Indian parties agree on new Kashmir coalition

India's main opposition Congress party and a popular Kashmiri regional group agreed today to form a coalition government in the…

India's main opposition Congress party and a popular Kashmiri regional group agreed today to form a coalition government in the rebellious state that could lead to peace talks with the separatists.

The Congress party and Mufti's People's Democratic Party (PDP) arrived at the decision after no clear winner emerged from state elections earlier this month.

A top priority facing the new administration will be how to bring peace to a state racked by a 13-year separatist revolt in which more than 35,000 people have been killed.

Mufti, whose party has vowed to start unconditional talks with separatist militants to end the revolt, said: "This is a golden opportunity, a turning point in the history of Jammu and Kashmir".

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The Congress party has not spelt out whether militants operating in Kashmir should be included in talks or whether talks should be held without conditions.

The two parties had been haggling over who will lead the new administration and over a blueprint for the new government.

A police spokesman in Srinagar, the summer capital of Jammu and Kashmir, said 10 people had been killed in fresh separatist violence in the region since yesterday.

India blames Pakistan for fuelling the rebellion by training, arming and sending militants into Kashmir. Islamabad denies direct involvement, but says it gives moral and diplomatic support to Kashmiris in what it calls their freedom struggle.