He also announced an extension in temporary recognition of private schools by one year.
The minister was presiding a meeting with representatives of various associations of private school managements here when the decisions were taken, an official release said.
The Education Minister said that under Section 134A, private schools in rural areas, which provide admission to meritorious poor students of Classes II to V, would be given Rs 300 per month and those in urban areas would be given Rs 500 per month as reimbursement.
He said that recognition period of the private schools, which have already been granted temporary recognition, would be extended by one year.
Sharma said a Coordination Committee comprising officers and private school operators has been constituted for redressal of problems being faced by the private schools.
The Committee would meet at least once a month, he said.