The three interlocutors led by senior journalist Dileep Padgaonkar submitted a roadmap for peace in Jammu & Kashmir to home minister P Chidambaram on Wednesday.
They have recommended autonomy for isolated regions within the state, cross-border interaction and targeted economic assistance.
In their final report, the interlocutors, including economist MM Ansari and academic Radha Kumar, also echoed demands for watering down the excessive powers security forces wield under stringent laws such as the Armed Forces Special Powers Act and the Public Safety Act.
Key recommendations include setting up of multiple regional councils, broadly patterned on the existing ones for Leh and Kargil - to address alienation of backward regions.
The interlocutors were appointed last October after an all-party team went to Jammu and Kashmir to help reduce the trust deficit and alienation reflected by the high incidence of street violence.
The minister said the report would be placed before the delegation.
Padgaonkar told reporters their report would have been "far more worthwhile" if they had been able to speak with the separatists.
"I believe they have missed the bus," he said.
The remark didn't go down well with the ministry. The separatists cannot be wished away and "are the reality for us", a government official said.