The decision was taken at a cabinet meeting here chaired yesterday by chief minister Harish Rawat, official sources said.
It was also decided that about 500 pilgrims will be permitted daily to pay obeisance at the shrine out of which 100 will be from Uttarakhand.
Concentrating on streamlining arrangements for the Char Dham yatra of Badrinath, Kedarnath, Yamunotri and Gangotri after conclusion of polling to the five Lok Sabha seats in the state on May 7, the state cabinet also decided to provide incentive to hotel, restaurant and dhaba owners on the yatra route.
DMs concerned have been asked to identify areas on the pilgrimage route where traders will be exempted from payment of water and power bills for the next three years, they said.
Construction of the road with gentle slopes from Lanchauli to Kedarnath will be completed by May 30, the meeting was told.
In the next two weeks 100 toilets in Kedarnath and 30 in Linchauli will be built for the convenience of devotees.
Doctors and pharmacists deployed on the yatra route will also be given incentives.