The 'Rock On for Humanity' concert, to be held in Mumbai on Oct. 31, is an initiative by Akhtar and Rampal, both of whom starred in the Bollywood hit "Rock On" – about four friends who form a rock band.
Rampal said the idea for the concert came about while he, Akhtar and "Rock On" producer Ritesh Sidhwani were reading about the film's success in newspapers.
"At the same time, the papers were also full of all these terrible things that the floods were doing in Bihar," Rampal told reporters.
"That's when we thought we should do something about this."
Funds raised at the concert will help set up rehabilitation camps for women and children in some of the worst affected areas in Bihar, where nearly 300 flood-related deaths were reported.
"Rehabilitation will take a lot of time and effort. We hope this concert will go a small way towards that end," said lawmaker Priya Dutt, whose Nargis Dutt Memorial Charitable Trust is also associated with the initiative.
Bollywood actors Shah Rukh Khan and Hrithik Roshan are slated to make an appearance at the concert, organisers said.