Harmanpreet Kaur joined the Punjab police as a Deputy Superintendent of Police (DSP), in Chandigarh, on Thursday.
The recommendation is being forwarded to the Union government.
Recalling the scenes that followed the attack on 'Nirankaris', the eyewitnesses said they were panicked, shocked and scrambled through a thick blanket of smoke.
Pakistan's Inter-Services Intelligence is quite active in fomenting trouble in Punjab and the grenade attack in Amritsar was a pure act of terrorism, Singh said.
The chief minister said certain "leads" have been found which are being pursued aggressively and assured that culprits would soon be arrested. The chief minister has also announced a reward of Rs 50 lakh for anyone providing information on those involved in the blast.
A case of murder has been registered against six persons and one of the accused is also a Dalit.
A group of armed men in police uniform on Sunday attacked the Nabha Jail in Patiala and fled with five prisoners, including Khalistan Liberation Front chief Harminder Mintoo.