The amount has been sanctioned under the 'Khelo India' scheme by the Union Sports Ministry.
Implementation of this scheme was announced by Union Home Minister Rajnath Singh during his visit to the state on June 7 and 8.
A Home Ministry statement said an amount of Rs 10 lakh per block will be spent under the scheme in all the 143 blocks of 22 districts of Jammu and Kashmir.
"The Central grant will be used to provide soft support in terms of coaches, equipments, consumables, technical support, organising competitions including boarding and lodging facilities and travelling expenses for the participants," said the statement.
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