In February there should be plenty of accommodation. You will find somewhere available but I would try to get a list of preferred places together first. The only time I have known it difficult to find somewhere is across Christmas and New Year.

1000 rps per night should be ok. There is cheaper and there is certainly more expensive if you want it.

Always, always, always haggle. Don't be embarrassed to make what might seem to you a very poor offer. I start my haggling at about 1/3 of the asking price no matter what I'm looking at - actually that's not quite true, I don't haggle in restaurants other than for the seafood specials (lobster etc.). I have been told by many of my indian friends that there are kind of standard mark ups. Like for the brits it's about double (which is why I start at 1/3) for Americans its 3 or 4 times there acceptable price and scandinavians got the worse deal, 6 or 7 times the actual price they want. I might have the Yanks and the scans the wrong way around but take it from me for a Brit, start at nomore than 1/3 of the price.

Sometimes people won't budge, but mostly they will. Indians love any kind of offer because it's a starting point and then its just a matter of negotiation and believe me they can negotiate with anyone. The only thing I would say is do not haggle unless you really are genuinely interested in what ever you are haggling for