Even crores is 'not enough' but we need to commend the CM for this. At least it will take care of his family, they can stay comfortably and memorial will remind others of his sacrifice of life to the nation. Something is better than nothing.
Nobody can bring the dead to life back again. His wilfe lost her husband, children lost father, parents lost a son - lost forever.
Only thing that can be done is to help and try to alleviate their difficulties. Hence, this is commendable.
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Nothing can compensate the loss of life. But it was in the line of duty as a soldier that he lost his life. One can only reasonably calculate his family's present and future financial needs and try to make up for the lost income to minimise the gap.
This is over and above whatever he would be getting as normal financial benefits a soldier gets if killed on duty.