The Centre may give some relaxation to the people in the Kashmir Valley, where restrictions have been imposed, so that they can participate in Eid-ul-Zuha on August 12, officials said on Wednesday.
However, it is immediately not clear whether the relaxation will be given fully or partially.
The restrictions were imposed before the government's move to abrogate provisions of Article 370 that gave special status to Jammu and Kashmir, and bifurcation of the state into union territories.
The government is trying to work out plans for some relaxation in the restrictions imposed in the Kashmir Valley so that people can take part in Eid-ul-Zuha, an official said.
The government, however, may not immediately release the arrested leaders -- former chief ministers Omar Abdullah and Mehbooba Mufti -- who were lodged in guest houses.
The leaders can only be released after reviewing the law and order situation in Kashmir the coming days, another official said.
The Bharatiya Janata Party-led government's bold move to revoke the special status of Jammu and Kashmir and bifurcate the state into union territories -- Jammu and Kashmir, and Ladakh -- secured Parliament's approval on Tuesday with the Lok Sabha passing the new measures with an over two-third majority.
The Rajya Sabha gave its approval to the resolution on Monday.
Defending the government's action to put restrictions in the Kashmir Valley, Home Minister Amit Shah on Tuesday said in the Lok Sabha that the law and order situation there had not deteriorated and whatever actions were taken were all precautionary.
The government move to revoke some provisions of Article 370 is a bold and far-reaching decision that seeks to redraw the map and the future of a region at the centre of protracted militancy.
Fulfilling an electoral promise of the BJP less than 90 days after the Modi 2.0 government took power, Shah had announced the decision in the Rajya Sabha, which approved both the resolution and the Jammu and Kashmir Reorganisation Bill.