The decision to free the prisoners was taken by the Joint Screening Committee comprising officials of the state and the Centre.
This is the first result of talks between the PM and Hurriyat.
Chairman of the hardline faction of Hurriyat Conference Syed Ali Shah Geelani was placed under house arrest on Wednesday morning, official sources said.\n
Curfew like security arrangements continued in Srinagar to thwart any militant strike during the ongoing two-day round table conference on Kashmir convened by Prime Minister Manmohan Singh.
India and Pakistan have no right to impose leaders or solutions on Kashmiris who have sacrificed their lives and honour for a sacred cause, he said.
Kashmir issue: Hurriyat chief Mirwaiz meets Musharraf in New York
An eight-member delegation of PoK is here to participate in a heart-to-heart between people of Jammu and Kashmir and that of PoK.
Accusing Delhi of insincerity, the Hurriyat said the talks would resume only if the government ended "human rights violation" in Jammu and Kashmir.
Mirwaiz will be in New York for the Organisation of Islamic Conference general council meeting and Musharraf would be there to attend the United Nations General Assembly meeting.
The prime minister has been briefed about the talks held earlier last year during the NDA regime.
The Hurriyat's meeting with Prime Minister Manmohan Singh would be its first with the UPA-led government since it came to power in May last year.
The Hurriyat leaders are the real representatives of the Kashmiri people and India will have to accede to this fact, the foreign office spokesman said.
Favouring a ceasefire in Kashmir coinciding with Eid next month, the All Parties Hurriyat Conference on Tuesday said this would build moral pressure on militant outfits.
The moderate All Parties Hurriyat Conference chairman Mirwaiz Moulvi Umar Farooq on Wednesday hailed the former prime minister Atal Bihari Vajpayee's statement in which he had spoken 'of the need to take everybody forward within the ambit of humanity'.
Authorities imposed restrictions in several downtown localities early Saturday, as separatists called bandh against the beef ban hit life in Srinagar and elsewhere.
The separatist groups had called for a march to Lal Chowk to protest civilian deaths during the unrest.
They will be here on an invitation of SAFMA's Indian Chapter.
Jammu and Kashmir Chief Minister invited separatists' top leaders for talks with the all party delegation that is due to arrive in Srinagar on Sunday
The Hurriyat Conference and other major separatist groups will boycott the conference.
The moderate faction of Hurriyat Conference on Wednesday asked people to cancel the reception arranged for its seven-member delegation returning from Pakistan on Thursday.
Geelani, who Islamabad's backing, is understood to have impressed upon Kasuri to do more on involving Kashmiris in the dialogue process.
'I am a misunderstood person in Pakistan,' L K Advani tells Hamid Mir.
"We have no objection if they [the Hurriyat leaders] want to travel to Delhi and hold talks with the Indian leadership," he said.
Hiba got the unwanted tag of being the youngest pellet victim in Kashmir on November 25 when she was hit by pellets inside her house during clashes between protesters and security forces in Shopian district.