The high-level meeting presided by the prime minister was also attended by Home Minister L K Advani, Defence Minister George Fernandes, Home Secretary Kamal Pandey, Cabinet Secreatry Prabhat Kumar and other senior officials of intelligence agencies, official sources said.

Meanwhile, a high-level sub-committee formed recently for resolving the state's financial problems has made some progress on assessing its needs, but was yet to reach any conclusion, state Finance Secretary Ajit Kumar told newsmen.

Kumar, who met member-secretary of Planning Commission N C Saxena on Thursday, said "there was progress on some issues".

Centre is stressing that the state government should utilise the funds for only those schemes for which they had been allocated, the sources said.