Rs 50,000 was announced for each person injured in the state-run National Thermal Power Corp plant blast on Wednesday.
At least 26 persons died after a massive explosion in on the boilers at NTPC's Unchahar plant yesterday.
The announcement was made by the Prime Minister's Office in a tweet.
"Prime Minister @narendramodi has approved an ex- gratia of Rs 2 lakh each for the next of kin of those who have lost their lives due to the accident at the NTPC plant in Raebareli, Uttar Pradesh. PM has approved Rs. 50,000 each for those injured due to the accident," PMO India said on Twitter.
The state government has ordered a magisterial probe, while the NTPC has also launched a probe into the incident which it said took place due to "excess ash deposition" in the furnace.
The massive explosion took place in a 500 MW boiler unit in Unchahar town on the Lucknow-Allahabad highway.
Many were trapped when the fire erupted in the boiler and a huge ball of dust rose after the blast, making the rescue operations difficult.
Earlier, Uttar Pradesh Chief Minister Yogi Adityanath also announced ex gratia of Rs 2 lakh for the families of dead and Rs 50,000 for the injured.
With inputs from PTI and IANS