The government is giving Rs. 30,000 ($300) per month to 500 artists, many of whom have suffered at the hands of militants.
Tourists from across the country and outside visit the alpine lake during the summer months.
The centuries-old water mill method of grinding grain into flour remains popular, despite the advent of modern flour mills.
Authorities have planned three months of activities meant to underscore the defeat of militancy.
Militant groups and the criminally inclined are duping citizens into donating to fraudulent charities.