In what could be a major step towards their rehabilitation, Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed said that about 150 migrant Kashmiri Pandit families living in Jammu have agreed to return to their homes in the valley.

"These people, who hail from Mattan, have given it to me in writing that they are willing to return. I have spoken to the Muslim population of the area and they are keen to have the Kashmiri Pandits back. The maulvi (priest) of the local masjid would personally welcome them," he said in Delhi.

These families would be moved to Mattan some time in March next year, he said.

He, however, admitted that he has not yet visited even a single migrant camp.

The Mufti is in Delhi to hold discussions with Congress president Sonia Gandhi on Saturday evening on a cabinet expansion.

"We have got Rs 100 million (Rs 10 crore) from the Centre for rehabilitation of Kashmiri migrants and we have asked for another Rs one billion (Rs 100 crore). If need be, the state government would also spend its money for the purpose," he told mediapersons at his house in Delhi.

When asked if the state government was planning to appeal against the Jammu and Kashmir high court order, which sought to restore the 'state subject' status of the women married outside the state, Mufti said that his government has no such plan.

He clarified that the notices already sent to over 3000 persons asking them to explain why their 'state subject' status would not be cancelled. He appealed to the Kashmiri migrants living in refuge camps to retain their 'state subject' status.

"We are not going to harass anyone. In the past, people have been forced to pay bribes to retain their state subject status intact," he claimed.

He blamed vested interests for keeping militancy alive in the state, but refused to identify the vested interests.

He revealed some of his plans to revive the economy and the tourism industry in the state, and also that he plans to invite the Hindi film industry to come and shoot their films in Jammu and Kashmir.

He singled out senior Congress leader Dr Manmohan Singh for special praise for his efforts in reviving the economy of the state. "He has been of immense help to us and my finance minister Muzaffar Beig has been in continuous touch with him."

He said that his government was seriously thinking of lifting restrictions on traffic movement in the state after six in the evening.

"Traffic movement should be allowed round the clock. Even militants are afraid of attacking civilian targets as it would invite an adverse reaction," he said.

More reports from Jammu and Kashmir