Adityanath, who met Sagar's family in his native village Tikampaar to offer condolences, also promised employment to the children after completion of their studies, officials said.
The Chief Minister said a 'shaheed smarak' (martyr's memorial) and a girls' inter college will be set up in the village in the memory of the deceased.
He also said that a road will be built to connect the village to the main road, the officials said.
Agriculture Minister Surya Pratap Shahi had earlier given a cheque for Rs. 20 lakh to the family on behalf of the state government.
Sagar and Army's Naib Subedar Paramjit Singh were killed and their bodies mutilated when Pakistani troops sneaked across the LoC upto 250 metres inside the Indian territory last week.