The Home Ministry is expected to place the details of the package before the Union Cabinet for approval soon, a senior official said.
The Jammu and Kashmir government has already identified 36,348 families for distribution of the package under which each family will get around Rs 5.5 lakh.
"We hope that within a month, the package will get approval from the Union Cabinet and the funds could be distributed among the beneficiaries," the official said.
Some of the families were displaced during partition in 1947, and others during the 1965 and 1971 wars with Pakistan.
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Jammu and Kashmir Sharanarthi Action Committee (JKSAC), an organisation representing the displaced people of the PoK has been maintaining that the package should not be seen as final settlement as Rs 9,200 crore was required to settle all of them.
The concessions include special recruitment drives for induction into paramilitary forces, equal employment opportunities in the state, admission for the children of refugees in Kendriya Vidyalayas, among others.
Prime Minister Narendra Modi had for the first time talked about the plight of people of PoK, Gilgit-Baltistan and Balochistan at an all-party meeting convened to discuss the prevailing situation in Jammu and Kashmir on August 12.
Three days later, while addressing the nation on Independence Day, he again referred to the three regions under the control of Pakistan.
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