The Prime Minister said while Rs 570 crore would be provided by the Centre for renovation of houses, Rs 175 crore will be given for start of immediate renovation work of six major hospitals across the state.
Modi said the grant of money for renovation of the hospitals would also cover immediate procurement of new equipments and machines.
The Prime Minister told reporters after meeting Chief Minister Omar Abdullah that he was "seriously considering" a demand made by people whose houses were damaged by the flood waters if the money for their renovation could be directly sent to their bank accounts.
Goswami said the package announced by the Prime Minister today was not linked to the memorandum submitted by the state government seeking a special package of Rs 44,000 crore for rehabilitation of flood victims.
Appropriate funds will be released after examination of the memorandum by the central government, he added.