While some members of the community oppose the setting up of separate colonies, others feel that it is the ideal proposition considering their security and safety.
"We do not want separate colonies, we want to live with our Muslim brothers," M K Bhat, a Kashmiri Pandit, who was earlier a resident of Pampore in south Kashmir's Pulwama district but now lives in Jammu. He said he would love to return to his roots and live at his native place.
Bhat accused the government of raking up the issue of separate settlements for the Pandits around the time the Kheer Bhawani Mela is held.
"They (government) want us (Hindus and Muslims) to fight. Whenever the Mela comes, they rake up the issue of separate colonies. I want to ask them, who among us has said that we want separate colonies," he said.
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Another Pandit, Vijay Bhat, a native of Budgam in central Kashmir, said the Pandits want to return but do not want to live under the shadow of the gun.
Vijay said the Muslim majority of the Valley was not their enemy.
"Locals are not our enemies. Of course, there are some miscreants, but they are everywhere. We have lived as brothers for ages and we will live as brothers," he said.
However, Ramesh Nath, another Pandit, said establishing separate colonies was an ideal proposal.
"That will be ideal from the safety point of view. We are interested in returning but where will we live? We have sold our properties and that cannot be retrieved now, so separate settlements is a good idea as it will also help us build confidence and trust," Nath said.
"You see the situation is not that good. Though the process of return has been initiated, it will take some more time. Unless the situation gets better, it will be very difficult," he said.