India has said the hundreds of men from Indian-administered Kashmir who have crossed into Pakistani territory should be able to return without punishment.
Home Minister P Chidambaram said anyone willing to give up the fight against Indian rule would be welcomed home.
The home ministry and state government are discussing how best to manage their rehabilitation into mainstream society.
Sources say the issue will be raised in talks between the Indian and Pakistani foreign secretaries later this month.
The dispute over Kashmir remains at the heart of long-standing tensions between the two countries.
And there is no guarantee the Pakistani authorities would co-operate in any scheme to repatriate the militants.