The funds are the second instalment of the Central share of Calamity Relief Fund for the year 2009-10. The amount is usually released in December, but the payment has been advanced in view of the grim situation in the two states.
The decision was taken at a meeting chaired by Cabinet Secretary K M Chandrashekhar on Tuesday to review the flood situation in Karnataka and Andhra Pradesh.
The Resident Commissioners of both the states, who attended the meeting appreciated the prompt and quick response by the Centre in providing logistic support for rescue and relief operations.