According to the U.S. Department of State Country Reports on Human Rights Practices for 1990 (p. 1436), "Indian citizens enjoy full freedom of movement within the country, except in certain border areas where, for security reasons, special permits are required." This was corroborated by an official of the High Commission of India in Ottawa (7 Jan. 1992).

Attached please find an article from The Hindu on identity cards for Punjab villagers.
Bibliography

High Commission of India. 7 January 1992. Telephone interview with official.

U.S. Department of State. 1991. Country Reports on Human Rights Practices for 1990. Washington: Government Printing Office.
Attachments
The Hindu. 29 December 1990. "Identity Cards for Punjab Villagers".