Pellet guns are, however, unlikely to be completely banned but will be fired in "rarest of rare cases".
The seven-member expert committee, headed by Joint Secretary in the Home Ministry T V S N Prasad, submitted its report today.
The panel was constituted after scores of protesters were blinded by the use of pellet guns in the Valley.
The report for exploring the other possible alternatives to pellet guns as non-lethal weapons was submitted to Union Home Secretary Rajiv Mehrishi here, an official spokesperson said.
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Sources said Pelargonic Acid Vanillyl Amide (PAVA) also called Nonivamide and other non-lethal ammunition like 'stun lac cells' and Long Range Acoustic Device (LARD) which create deafening noise to paralyse people were understood to have suggested as possible alternatives to the pellet guns.
However, LARD is likely to be used in rural areas as it could prove dangerous for old buildings in downtown Srinagar.
Sources said pellet guns, which are being used by security forces for crowd control in Jammu and Kashmir, will not be completely banned but will be fired in "rarest of rare cases".
The option of firing pellet guns will remain but these will be used only in rarest of rare cases, the official said.
The government is facing severe criticism for using the pellet guns for crowd control in Kashmir Valley as the weapon has caused large-scale injuries in the 51-day unrest following killing of Hizbul Mujahideen militant Burhan Wani on July 8.
During his two-day visit to Kashmir on August 24-25, Home
Minister Rajnath Singh had said an alternative to pellet guns will be given to security forces in the coming days.
'PAVA shells', a chilli-based ammunition, is less lethal and immobilises the target temporarily.
The committee held a demonstration of the newly-developed shells at a test field earlier this week and gave the thumbs up for use by security forces for crowd control and during protests like those being witnessed in the Kashmir Valley in place of the pellet guns which have caused grievous injuries and large-scale blinding.