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Making a statement in the State Assembly, CM Palaniswami said roads and bridges were badly hit due to the last year's cyclone that ravaged several districts.
The approval for the financial assistance was given at a high level committee chaired by Home Minister Rajnath Singh.
Accompanied by his deputy O Panneerselvam, ministers and officials, Palaniswami visited a relief camp in Vailankanni area and interacted with the affected people.
The seven-member team is headed by Daniel E Richard, a senior official in the Union Home Ministry in New Delhi.
The Leader of the Opposition in the state assembly demanded that Chief Minister K Palaniswami convene a meeting of stakeholders from the region to take forward the relief activities in an effective manner.
Chief Minister K Palaniswami, who met Prime Minister Narendra Modi here with a plea for central assistance for various sectors in the affected districts, said the death toll from Cyclone Gaja stood at 63.
Party President MK Stalin said the DMK Trust will separately contribute a sum of Rs 1 crore towards the relief activities.
In a party statement here, Stalin said, "It was consoling to know that some party supporters have already started to take part in relief and rehabilitation work."
As of now, 1,77,500 people have been housed in over 351 camps, the chief minister said, adding food, and medical amenities were being provided to them by the government.
Talking to reporters, he said Union Home Minister Rajnath Singh had contacted him over phone yesterday to know of the extent of damage the Union Territory suffered.
