The Central government on Wednesday asked the J&K government to "formulate new surrender and rehabilitation policy", and provide surrendered militants "with economic rehabilitation enabling them to return to mainstream".
The announcement comes three months after the appointment of Dineshwar Sharma, as the union government's interlocutor. These suggestions have become part of what is now known as Sharma's "healing touch" outreach to the valley.
The home ministry has advised the J-K government to formulate a new surrender and rehabilitation policy, an official said.
In a communication, the ministry said an opportunity should be provided for alternative path of peace and prosperity to Kashmiri youth who have joined militancy.
The policy will provide the youth with economic rehabilitation and suitable training to run their own business, enabling them to return to the mainstream and lead a dignified life, the official said requesting anonymity.
The ministry has also advised the state government to constitute a high-level committee, headed by an officer in the rank of Director General of Police or Additional Director General, to review remaining cases of stone pelting against students and youth.
The home ministry is of the view that stone pelting cases of non-grievous nature against students and youth should be closed or withdrawn so that they get a chance to focus on their study and pursue their career without any psychological pressure, the official said.
The fresh initiative comes within two months of the J-K government announcing an amnesty scheme for students and youth who were involved in incidents of stone pelting for the first time.
Under the scheme, which was taken following a request of Home Minister Rajnath Singh, about 3,685 students and youth so far have got relief while more than 9,000 youngsters are likely to be covered under it.
The scheme is aimed at giving students and youth another chance to rebuild their career without any stress of being labelled as criminals for the rest of their lives, the official said.
In the fresh communication, the home ministry advised the state government to immediately set up an advisory board for migrants to redress the grievances of the migrants, including Kashmiri migrants, Jammu migrants, displaced persons of Pakistan-occupied Kashmir, Chamba and the West Pakistan refugees.
The old and dilapidated migrant camps at Jagati and Talwara will be repaired and renovated soon besides the work on artificial lake in Jammu will also be restarted soon.