This was stated by the Inspector General of Police, Kashmir Zone, Munir Khan Thursday at a press briefing here Thursday.
"We are compiling the steps to be taken for rehabilitating militants - both who have gone across and those who are here". We are looking for them.
The policy comes in the backdrop of Delhi's plans to intensify anti-Militant operations in the state.
He said there is already a policy for those Kashmiris "who had crossed over to Pakistan and married there".
He said that around 17 youth have joined militancy in the last four months.
Three terrorists were arrested and one was killed during an anti-militancy operation by security forces in Kund area of Kulgam district, said Jammu and Kashmir Police on Thursday. "Hopefully we should get them", he said.
"We have been appealing to the local militants that if they signal surrendering even during the encounter then we wouldn't kill them".
He said "religious exploitation" was another reason for the youth to join militancy.
In north Kashmir, he said, "foreigners (militants) outnumber locals (militants), which is why locals in that region are not joining militancy". "I'm looking forward to the day when he returns and joins the family".
The government had prior to this, announced two such policies for former militants.
"The influence of Kashmiri militant commanders is huge".
The IGP claimed that the police had brought back many youths, who were on their way to join terrorists, into mainstream.
Khan told news agency ANI that one of the three terrorists arrested is injured and is undergoing treatment in a hospital. The deceased terrorist was identified as Muzammil Manzoor Dar. "This operation was started on November 14 based on specific information about a big group of terrorists, a joint group of Lashkar-e-Toiba and Hizbul Mujahideen", he said.
The IG, Kashmir range, blamed Pakistan for luring the young Kashmiris into militancy.
The officer said that the youth in the age group of 15 years to 25 years were vulnerable to be exploited as they find it hard to differentiate between right and wrong. The recommendations would later send it to the government for approval.
Parading before the media two of the militants arrested in Kulgam (the third was in hospital), Khan said, "We arrested, alive, three militants from the encounter site.
We will continue to offer the surrender option to militants caught in an encounter if they raise their hands up for it", Mr. Khan said.