Huts of around 66 families were destroyed as flames swept through them on Saturday, killing 70-year-old Rukmini Devi.
An official said that the fire started around noon from a nearby stall selling fritters.
The family of the deceased will get a compensation of Rs. 1.5 lakh.
Each of the families who lost their houses in the fire will receive Rs. 4,200 and 50 kg of rice and wheat each.