Prime Minister Manmohan Singh  will announce a multi-crore economic package for Kashmiris during his two-day tour of Jammu and Kashmir starting September 16, a top government official told rediff.com

"It is likely that he will set up a high-powered committee under his chairmanship for the purpose," the senior Ministry of Home Affairs official added.

He said package the will go a long way is helping J&K Chief Minister Mufti Mohammed Sayeed apply the healing touch to the state.

In fact the J&K chief minister had gone to Delhi at July-end and requested the prime minister to announce such a package.

The official said the Mufti had sought a grant of Rs 3500 crore.   

Singh during his visit to J&K will be briefed by personnel of army intelligence, the Central Reserve Police Force, and representatives of the Intelligence Bureau.

On the question of J&K Governor Lieutenant-General (retd) Srinivas Kumar Sinha's equation with the Centre, the official said that it was unlikely that the gubernatorial office would have a new appointee.

It is no secret that the Mufti and the governor can't see eye-to-eye.

Sinha had been appointed by the erstwhile National Democratic Alliance government of former prime minister Atal Bihari Vajpayee with which he had a 'solid equation'.