"In keeping with our commitments to dialogue & (and) social inclusion, we have decided to consider amnesty for 23-year-old Sheikh Danish Mushtaq, resident of Aloosa Bandipora," Ms Mufti wrote on micro-blogging site Twitter.
The chief minister's statement came just a day after the handicapped mother of the youth wrote an open letter to her, seeking amnesty for her incarcerated son.
Fahmeeda wrote to Ms Mufti on Saturday saying her son was languishing in jail for many years for raising his voice against "injustice".
She said her son had been slapped with PSA and lodged in different jails, and was in detention despite the judiciary quashing the charges against him.
She claimed her son always advocated peaceful forms of agitation and believed in non-violence, and asked the chief minister to consider the case on "urgent humanitarian grounds".
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