Rio de Janeiro  - Brazilian President Luiz Inacio Lula da Silva is to free up 538 million dollars for reconstruction and support for the victims of heavy rains in the southern state of Santa Catarina, which left at least 86 people dead and more 54,000 evacuees.

Following a meeting with Russian President Dmitry Medvedev in Rio de Janeiro, Lula cancelled all appointments on his schedule for Wednesday and travelled to Santa Catarina.

He flew over the towns that were devastated by the rain, which was affecting more than 1.5 million people in the state.

According to state Civil Defence officials, the number of dead could rise to more than 100, since at least 30 people remained missing.

"The government will make every effort to alleviate the consequences of the rains and the flooding," said the president's Chief of Staff Dilma Rousseff.

After rescue efforts are over, the authorities in Santa Catarina were set to focus on regaining access to eight municipalities that had been cut off from the rest of the state. Six of them were declared disaster areas.

Further, the rain cut off the power supply to more than 106,000 homes, and also cut the supply of natural gas to several towns in Santa Catarina and the neighbouring state of Rio Grande do Sul, following damage to a gas pipe that is set to take at least three weeks to repair.

Over 22,000 people lost their homes and were being lodged in public buildings.

"My whole family was carried off by the rain, and I do not know whether they will be found. I don't want to return there anymore," said Gerda Karl, 53, who lost her parents, her husband and two of her three children in the tragedy.

Karl lived in the town of Ilhota, one of the worst-hit by the rain. She survived after the water carried off her home and also killed the four cows that provided the milk and cheese that the family sold for a living.

The town of Blumenau, settled by Germans and which is annually hosts the country's Oktoberfest - one of the most popular celebrations in Brazil - has been among the worst-hit by the tragedy. (dpa)