"The Peer Kho Temple has been developed as a major pilgrim tourist attraction at a cost of Rs 3.5 crore," Minister for Tourism and Culture, Nawang Rigzin Jora said.
"Under the centrally funded tourism destination scheme, the temple was developed," he said.
The temple would be made open to the people by January 15, 2013, the minister said adding, development of pilgrim places in Jammu and Kashmir is included in the priority list of the state government.
Peer Kho cave temple overlooking the Tawi river is also known as Shiva temple in Jammu.
It is located on the bank of river Tawi and is widely believed that Ramayan character Jamvant (the Bear God) meditated in this cave. The temple houses a Shiva lingam, believed to have been formed naturally, is one of the major attractions for the tourists.