He may announce a special package during his day-long visit to Srinagar.
The Prime Minister made the announcement about the visit himself on the micro-blogging site Twitter.
"Will be in Srinagar on Diwali, 23rd October and will spend the day with our sisters and brothers affected by the unfortunate flood," he tweeted.
He is likely to meet delegations from various sections of the society at Raj Bhavan in Srinagar.
The delegation includes officials from the ministries of Home, Finance, Agriculture and Rural Development. They met the state government officials and affected people to collate information about the damage caused to dwellings, crops, livestock, roads, bridges, embankments and other government properties.
Floods have resulted in the loss of 285 lives and affected around 3.5 lakh houses, of which 95,000 have collapsed, according to official estimates. The flood has impacted upon some 25 Assembly constituencies including eight in Srinagar city.
Omar Abdullah-led government has urged for a Rs 44,000 crore special financial package for providing of funds for rehabilitation of the people who suffered due to floods.
Modi's decision to travel to Srinagar on Diwali evoked mixed response from political parties. Chief Minister Omar Abdullah welcomed it while opposition PDP gave a lukewarm response by saying that it was a good gesture but could have been done during the Eid festival celebrated immediately after the floods.
Congress leader and Parliament Member Shashi Tharoor said in his tweet that "Diwali in Srinagar is a great idea but it would have been better if there wasn't an election looming in the state.
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