(1) The Government may constitute a fund known as the “Jammu and Kashmir Heritage Conservation and Preservation Fund” for the purpose of,—
(a) maintenance and improvement of heritage objects, areas, buildings, heritage precincts and heritage sites and environmentally sensitive areas ; and
(b) preservation and promotion of intangible cultural heritage.
(2) The Heritage Conservation and Preservation Fund would have a “Corpus Money” to the tune of Rupees 50 crores which shall be earmarked by the Government.
(3) The Government may, from time to time, allocate to the Fund moneys from the Consolidated Fund of the [Union territory of Jammu and Kashmir] and contribution to the fund may also be received by way of donations, grants, etc. from individuals, trust, local bodies companies and other agencies towards heritage conservation.
(4) Moneys may be advanced by the Government to the authority, as grants or loans, on such terms and conditions as the Government may determine, for the performance of its functions under this Act.
(5) The said fund shall be administered by the Government and audited by the Accountant General every year.
(6) Every local body/concerned departments in the [Union territory of Jammu and Kashmir] shall contribute such moneys to the fund account of the authority as the Government may specify from time to time.
(7) The authority shall utilize the fund for meeting:—
(a) the cost of acquisition of heritage objects, building, artifacts, handicrafts or heritage precincts or heritage area for the purpose of conservation ;
(b) the expenditure for any development or works on any tangible heritage and preservation and promotion of any intangible cultural heritage as contemplated in the Heritage Conservation and Preservation Plan.
(8) The authority may disburse funds to the owners, lessees or power of attorney holders of listed heritage objects/buildings, artifacts, handicrafts, paintings etc. even if they are private, for maintenance of the buildings, artifacts/ handicrafts/paintings in good condition, if such maintenance are found necessary. Besides, funds/ incentives may be given to individuals/groups/ communities for preserving intangible cultural heritage.
(9) The authority shall approve every year, a budget in respect of the next financial year with its estimated receipts and expenditures under the fund.