New Delhi: Asserting that talks with National Socialist Council of Nagalim - Isaac-Muivah (NSCN-IM) group were progressing well, Minister of State for Home I D Swami today (Jan 30, 2004) said the Government was open to hold dialogue with separatist groups including Naxalites.

"We are committed to strengthen peace moves elsewhere also," Swami said in Rajya Sabha referring to the breakthrough made in talks with Bodo separatists and efforts to hold a dialogue with Hurriyat and other groups in Jammu and Kashmir.

At the same time, the Minister, who was replying to a private member's resolution demanding special category status for Jharkhand, Chhattisgarh and Uttaranchal, said no compromise would be made in efforts to strengthen the security network in the country.

In this connection, he said the Centre was now reimbursing 50 per cent of security-related expenses of all insurgency-hit States and new proposals had been mooted to divide the affected States into three categories under which the States would get upto 75 per cent of security expenses.

He said the Centre had raised the police modernisation fund from Rs 100 crore to Rs 1,000 crore with States expected to match the grants.

Swami said Uttaranchal had already been categorised as a special category State, adding it was the National Development Council and the Finance Commission which lays the criteria for categorising the States.