This was announced at a meeting between External Affairs Minister Salman Khurshid and his Japanese counterpart Fumio Kishida on the sidelines of the Asia-Europe Meeting.
The money is in addition to the $200,000 Japan had provided earlier through the International Federation of Red Cross and Red Crescent Societies to support the distribution of relief items and relief operations to help the flood victims, a statement from the Japanese embassy here said.
The government of Japan Monday also signed an exchange of notes for the Tamil Nadu Investment Promotion Programme ($130 million) and the Campus Development Project of the Indian Institute of Technology, Hyderabad (Phase 2)for $177.3 million, the statement added.
In the course of reconstruction efforts, Japan will be working closely with the partners on the ground including the Government of India, the state of Uttarakhand and local communities and organisations.
These will include reconstruction of roads in the region, rebuilding communities and supporting people in their efforts to increase their income.
"Through this programme, 2,000 communities will be rebuilt and 30,000 people's income will be enhanced on sustainable basis. In a few months, JICA (Japan International Cooperation Agency) teams will be arriving and start working on detailed plan together with the state government involving local communities," said the statement.
Japan will also work on eco-restoration activities such as afforestation and soil moisture conservation.