The only stumbling block in this carefully-crafted operation is the contrary report sent by the central security and intelligence agencies operating in the valley. These reports, now with the Union Home Ministry and its J&K cell, have strongly advocated establishing democratic institutions at the lowest level, ``which would go a long way in defusing the propaganda of Pakistan about abject denial of basic rights to the Kashmiris.''

The agencies have reported that situation in the valley has greatly improved over the previous years and foreign militants are no longer receiving support from the locals. Though some areas were militant-infested, the situation was ripe for establishment of Panchayati Raj. The agencies were not ``very confident'' of the NC's victory in the elections.

The worried NC, however, has very subtly embarked upon the operation. A bogey of fear is being raised by lower and middle-rung leaders and party workers at different platforms that due to heavy shelling by the Pakistani army in the border and spurt in militancy, heavy killings may be witnessed if the State Government went ahead with the polls. However, the Centre had made no such categorical refusal and even if it was true, it was the duty of the State Government to have checked with the Centre before announcing the panchayat polls, an official said.

Sources told The Indian Express that the NC would use its friends in the media to help create an atmosphere that would pave the way for cancellation or postponement of the polls. As part of the operation, NC held a provincial-level conference on Sunday where almost all the leaders demanded postponement of the elections.

Ironically, the party's second-most powerful person, NC general secretary Sheikh Nazir had only two days back made a fervent appeal to his partymen to gear up for the forthcoming panchayat polls. In Sunday's meeting, the same leader was singing a different tune.

It is not fear of the gun but the apprehension of public wrath compounded by the miserable failure of its government virtually on all fronts, that has scared NC bosses, feel political observers here. The ruling party has been losing its credibility and public support for two main reasons: first, owing to rampant corruption, brazen play of nepotism, and shameless loot of development funds at every level; and the reluctance of its legislators and leaders in moving out to rural areas. Abdullah in a meeting held at his residence last month, had reportedly lambasted MLAs and leaders for the declining public faith in the party.

According to the Congress leader and former State general secretary Taj Mohiuddin, the NC game was very clear since the beginning. ``We knew that they will have no courage to face people at grass-roots level,'' he said. By announcing panchayat elections, Abdullah has scored a political point (that he fulfilled his commitment made in the manifesto) and that he is helpless if the situation is not conducive. It is nothing but a game of one-upmanship, said another Congress leader.

Most of the NC leaders, including Sheikh Nazir hardly visit far-flung areas for mobilising public support. They would rather spend time in the corridors of power. Nearly 400 NC leaders move with heavy security cover which is a major reason for their alienation from the people. The top leaders of NC had reportedly decided to get out of this self-woven web after realising that the ground situation was grossly unfavourable and that panchayat polls might prove a costly folly.

Panchayat elections were last held in 1978. Abdullah had, in his election manifesto in 1996, resolved to ``take democracy to grass-roots level''. The government had earlier announced its decision to hold elections in October 1997 but deferred it on the plea of revision of electoral rolls and had decided to hold the polls in April this year. ``But we had to postpone the elections once again in the same month,'' said Panchayat Minister Abdul Rahim.