The cost of damage caused by the tsunami and the reconstruction required in the states and the Union Territory of Pondicherry hit by the disaster is estimated to be Rs 7,000 crore.
The rebuilding of the Nicobar group of islands will cost almost the same, the Centre said on Friday.
The estimate was made by the central teams, which visited the disaster zones, a home ministry spokesman said.
The teams returned to New Delhi on Friday.
While the Andhra Pradesh government has estimated the damage and reconstruction cost to be Rs 341.70 crore, Kerala has put the estimate at Rs 1,358.62 crore, Tamil Nadu at Rs 4,799.54 crore and Pondicherry at Rs 500.65 crore.
"The detailed damage assessment for Andaman and Nicobar Islands is being made," he said.
He said relief operations were continuing in full swing. The air force has been helping in the relief operations in a big way. Thirty-five aircraft have undertaken 343 sorties. Besides the force has also airlifted 1,214.64 metric tonnes of commodities and 10,840 people.
The navy has deployed 18 ships and the Coast Guard six, he said. The defence forces have evacuated 9,284 people in the Andaman and Nicobar Islands, 4,500 in Tamil Nadu and 9,950 in Kerala. They have also established relief and medical camps, and one ship has been converted into a hospital.
The spokesman said the Indian Airline and Jet Airways had undertaken 98 flights, of which 15 were for transporting cargo. They have also airlifted 7,353 passengers, including 216 infants, so far, he added.
The science and technology ministry, he said, will organise a workshop on January 21 and 22 in New Delhi to evolve a road map for setting up a tsunami warning system.
The sports and youth affairs ministry has established 390 relief and response camps in the affected regions, and 450 Nehru Yuva Kendra Sangathan volunteers are engaged in 20 such camps in Andaman and Nicobar Islands, he said.
The ministry has allotted Rs 3.91 crore for relief operations, he added.
The spokesman said a joint team of the department of water supply and the ministry of water resources is making an assessment of the damages caused to water bodies in and chalking out restoration plans for the island areas.
He said 90 per cent of water supply has been restored in Port Blair and South Andaman Rural.
Restoration work is in progress even in other islands except in Katchal, where assessment is being carried out, he said.
The Health Ministry has deputed 117 doctors, 62 paramedics and 20 nurses in the affected zones, he said. The central medical teams have attended to 13,940 patients, the spokesman said. He said additional teams, including those of psychiatrists, had been constituted for the rehabilitation of the victims. Children between six months and five years are being vaccinated for measles and being given recommended doses of Vitamin-A supplement, he added.