The announcement was made by Delhi Chief Minister Arvind Kejriwal.
"Many families have lost loved ones because of COVID-19. There are many families that have lost only breadwinners. On every death due to COVID-19, families will be given a compensation of INR50,000 (US$684) and those families that have lost the earning member will be given a pension of INR2,500 (US$34) every month," Kejriwal said while addressing media.
The chief minister said children who have lost both parents, or single parent due to COVID-19 will also be provided monthly assistance of INR2,500 up to the age of 25 years.
He said the government will take care of their education.
Kejriwal said that all 7.2 million ration cardholders in the city will be provided free 10 Kg ration this month. Besides, the poor and needy without ration cards will also be provided free ration.
Delhi has been under lockdown to contain the spread of the COVID-19 pandemic since April 19.
On Tuesday morning the federal health ministry said the city recorded 4,524 new cases and 340 deaths in the past 24 hours.
Across the country 263,533 new COVID-19 cases and 4,329 related deaths were registered in the past 24 hours.
India is witnessing a resurgence in COVID-19 cases and the second wave of the pandemic has caused a shortage of oxygen and essential medicines in the country's hospitals.
