Jammu and Kashmir Chief Secretary BVR Subrahmanyam did not make clear however whether mobile phones and internet connections would also be reinstated in the Muslim-majority northern region.

"You will see a gradual restoration (of telephone lines) from tonight and tomorrow onwards. You will find a lot of Srinagar functioning tomorrow morning," Subrahmanyam said, referring to the main city in the restive Kashmir Valley.

"Exchange by exchange they will be switching it on. Over the weekend you will have most of these lines functioning most probably," he told reporters.

He said the easing would "(keep) in mind the constant threat posed by terrorist organisations in using mobile connectivity to organised terrorist actions."

New Delhi stripped Jammu and Kashmir of its special status on August 5, scrapping an article in the constitution that prevented outsiders from buying property there and splitting the state in two.

Fearing an angry and potentially violent response, India deployed 10,000 additional troops, joining the half a million already there, severely restricting movement and cutting telecommunications.

Kashmiri politicians -- alongside university professors, business leaders and activists -- are among the more than 500 people that have been taken into custody.

Celebrations for Eid, a major Muslim festival, were massively curtailed on Monday, including with Srinagar's main mosque shut. The building remained off limits for prayers on Friday.

"It is expected that over the next few days as the restrictions get eased, life in J and K will become completely normal," he said.

Government offices opened on Friday and school would resume "area-wise" from Monday, he said.