You have been two years in office, but some important promises remain unfulfilled. The migrants have not returned to the Valley and the autonomy package is nowhere on the horizon...

As far as the autonomy package goes, the report is almost ready and will soon be placed before the people and the Government of India. Thepapers for regional autonomy for Jammu, Kashmir and Ladakh are with me and I will also forward these soon.

As far as migrants are concerned, we have always said conditions are conducive for their return. A rehabilitation package has been prepared and we are now waiting for the Centre to call a meeting where all these issues can be discussed with migrant leaders who are in camps, not the Kashmiri Pandits who are well-off and settled in the rest of the country. This is a meeting Mr Advani has to call.

What about the spurt in terrorism-related violence?

Militancy is now mostly confined to the foreign element, being sustained by the Afghans, the Pakistanis and the people from POK. There are very few Indians they have seen enough destruction here. Pakistan now has about 8,000 Kashmiri boys in its camps and they are hesitant to enter India because they know they will be killed. So Pakistan is using foreign mercenaries to operate in Kashmir and for Pakistan, it is a win-win situation. If themercenaries do not come back alive, they have nothing to pay them. Only if they come back alive do they have to pay them and give them a job.

Is there any hard intelligence about the Taliban making Kashmir their next operating ground? Some intelligence officials claim that the Taliban will wait for the next summer...

I do not think so. We have always been talking about next summer. What will they do next summer? The Taliban after having done murders of the Iranians are facing a war-like situation (from) Iran. This is not to the liking of Islamic countries and they are trying to mediate and find a way out. But the relationship is bad and is also affecting the relationship between Pakistan and Iran because they feel Pakistan is behind the Taliban. There is also the element of Shias being killed in Pakistan...The entire area is in ferment and is facing a very difficult situation.

I think the threat of Taliban was very positive for us before the tension between Iran and Afghanistan rose. Now that hasbecome less because tension has cropped up in their own area and it is not that easy for them to defuse it.

There are reports of about 2,000 militants having infiltrated into Kashmir between April and August this year. Were adequate steps taken to prevent this?

Ours is a very rugged border and infiltration is always taking place...we are continuously discussing this with the Government of India. We have now activated the border police as the second line of defence. Our borders are going to be much stronger by next year. Solar lights are being put up at some points and a lot of new equipment is coming in.

Are we talking of equipment for Electronic Welfare (EW), jammers, what?

I can only tell you this much: in a meeting in May in New Delhi, it was decided that some vital equipment needed by the Army and paramiltary forces will be taken care of. It has taken six months, there have been so many wrangles and bureaucratic delays but we have now overcome those. It also takes time to locatethese items on the international circuit. We will be getting equipment to pinpoint where wireless sets of militants are operating, equipment which picks up the heat of people moving in forests and communication facilities for village defence committees...The J&K police itself will get equipment worth Rs 40 crore. In all, it will be worth far more than Rs 100 crore.

What about the unkept promises of New Delhi? The state is facing a severe financial crunch, a huge bank overdraft and dues running into hundreds of crore...

There are a lot of wrangles at the bureaucratic level. The wrangling is terrible. We are fighting a type of war here and for God's sake, we cannot take a break. Delhi owes us about Rs 800 crore for security-related expenses, which if they pay off, it will help us pay the bank overdraft, which is touching Rs 1,000 crore. I have been put in a fix and it does not make a damn difference whether I become popular or not. But it does not matter to them (New Delhi). Who is Farooq Abdullahfor them? They have waived loans worth Rs 8,500 crore for Punjab and we are now telling them `Please help us come out of the red'. But let me tell you: there are a number of people who feel that `No, Kashmir must be kept holding a begging bowl all the time. Don't tell them to stand on their feet'.

How would you describe the attitude of New Delhi towards the state?

I would describe it as a communal attitude. They just hate our guts. Being a Muslim-majority state, some people in New Delhi feel we are responsible for what happened to the Hindus here and that we should be taught a lesson.Has this been the attitude of the BJP Government or their predecessor governments too?

That has been the attitude from the very beginning. Even when there were better times and the Congress was in power, my father would have battles with the people in New Delhi. Today, there are some people who have a communal bias and others who just have no interest in Jammu and Kashmir...

The Centre and the PlanningCommission have suggested some drastic measures like stopping withdrawals from provident fund accounts and non-payment of arrears to government employees. Are these feasible?

It is ridiculous. They do not realise that we are trying to raise this state from the ashes. These measures will create more bad blood with the people. We were not able to give salaries earlier this year. Our cheques have been bouncing from the treasury. How do you think I feel when government cheques bounce?

Has there been a lot of siphoning of funds which have been released? This has been one of the grouses of New Delhi...

They will say there is siphoning. But for God's sake, how much can people siphon? I called the Minister for Rural Development here and he saw the work done for himself. He said he could not believe it because the impression given to him was very, very bad. I admit there is corruption, but we are also fighting it. We have put a number of cases in court -- IAS, IPS officers, chief engineers, they areall being investigated.

Has the National Conference been able to increase its grass-root support these two years?

Politically, I know I am not going to be popular. I have asked for power and water tax and am going to again raise the tariff. I have stopped copying in exams. I better be honest with the people than be popular.

You are being called a political opportunist since you have so closely aligned with the BJP, which you had earlier called a communal party, and are also keeping your channels of communication open with the Congress...

I am close to any government which is in New Delhi. Let us be very straight about it. Because this state cannot afford to have confrontation with any Central government -- otherwise, our development will come to a halt and we will be a threat to the nation.