Making a suo motu statement in both Houses of Parliament, Home Minister Shivraj Patil said the benefits will apply to all the Kashmiri migrant families who left the valley "bag-and-baggage after 1989 and have not been able to return".
Noting that more than 55,000 Kashmiri families had been "forced to leave their homes in the wake of unfortunate events", he said they were an "integral part of the composite social fabric" of the valley and their return would address a "major humanitarian concern that has been crying for attention over the years."
Under the package announced by Patil, each migrant family which opts to return to the valley will get a lump sum grant of Rs 7.5 lakh to build or buy homes through group housing societies for which the state government has been requested to identify land.
It has also been decided to give a similar lump sum grant to migrant families whose houses have been fully or partially damaged, as well as assistance to those whose houses may not have been damaged, but may have got into disuse and dilapidation as a result of abandoment.
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"It is proposed to assist (the migrants) suitably with transit accommodation and start-up expenses," Patil said.
The monthly relief being given to around 15,000 migrant families in Jammu and Delhi would be continued for those families, which may opt to return to the valley, for two years to enable smooth transition, he said.