The state government will also approach the centre for a relief package.
The Uttarakhand government will probe if power firm NTPC is responsible for the sinking of land in Joshimath. Eight institutes will investigate the cause of subsidence in the Himalayan town and carrying capacity of all hilly areas will be checked. The key decisions were made at a Cabinet meet to assess the situation in the "sinking" town.
Life in the hill town of Joshimath has been disrupted in the last few days as residents took to the streets to demand action for the cracks that have developed in their houses.
"We have shifted 99 families from Joshimath so far and Rs 1.5 Lakh ex-gratia is being given. Assessment for rehabilitation is underway and we're making key decisions for future," Chief Minister Pushkar Dhami said after the meeting.
"We have not demolished any houses so far and survey team is present over there," he added.
The chief minister also said that Rs 1.50 lakh is being given immediately as interim assistance to all those whose houses, shops and businesses have been affected.
The state government will also approach the centre for a relief package.
Two members from each family that has been relocated will be given jobs under MNREGA, the government said. These families will also be exempted from paying electricity and water bills for the next six months, it added.
All state ministers will donate a month's salary to the Chief Minister's Relief Fund, the government added further.
Hundreds of structures have developed cracks leading to authorities "carefully" dismantling two hotels on Thursday, a day after protesters halted the operation demanding better compensation. Residents and experts have protested against power plant construction in the area, which they partly blame for the land sinking.
The state-owned firm, however, has told the power ministry it has no role in the subsidence of the region. A 12-kilometer long tunnel connected to the Tapovan Vishnugad hydroelectric project is 1 kilometer away from Joshimath town and at least a kilometer below the ground, it said.
On Sunday, the Prime Minister's Office (PMO) held a high-level meeting to review the situation in Joshimath.