"It is shocking, insulting and unbelievable to the community... It was (return to valley) never an economic issue for us. There are no takers for it," Panun Kashmir convenor Agnishakher told reporters here.
"We did not expect this announcement from Modi government. It has jolted us," he said.
In the similar vein, Jammu and Kashmir Vichar Manch national vice president R L Bhat also expressed surprise and unhappiness over the announcement made by the Union government.
"There is no model and structure in stead a mere announcement without holding discussions with stakeholders of KP leadership," Bhat said adding that the step will only further disheartened the community who had high expectations from the Centre to address the rehabilitation issue in a realistic manner.
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Prof B L Zutshi, who runs affairs of prime Institute of Community, Gandhi Memorial College, said that announcement has been done in haste before shaping up the modalities for security and safety and confidence building.
However, Youth All India Kashmiri Samaj (YAIKS) president R K Bhat welcomed the announcement of the Union government for Rs 500 crore package and asked the government to speed up the process.
"we have high hope in Modi government. We wish that return process should be put on fast track", he said.
Presenting the Budget for 2014-15, Finance Minister Arun Jaitley said that a fund of Rs 500 crore will be earmarked for providing support to Kashmiri migrants for "rebuilding their lives".
The Narendra Modi government has flagged off a rehabilitation programme of Kashmiri migrants, who left the Valley after the onset of militancy in 1990.