Militant groups, particularly those operating in the northeast, have realised that violence will never pay and the only way to solve their problems is peace negotiations, home minister P Chidambaram said on Friday.
He also said that the Centre, in collaboration with state governments, made efforts to deal with insurgent groups operating in the region through various ways in the last two years.
"Most militant groups have come to realise that violence will not pay, state will never allow the violence to pay. The state will never allow any violent group to overthrow, overpower the state and talks are the only way to find solutions to their problems," he said addressing the 7th Northeast Business Summit in New Delhi.
Chidambaram said it was heartening that most of the militant groups were in the mood to talk and most part of northeast were free from conflict.
The home minister, however, said there was still some areas of concern that include extortion and occasional kidnapping for extortion.
"Extortion keeps the militant groups going. That is their source of funds. I have been saying this with responsibility that these extortion rackets must be stopped," he said at the summit organised by ministry of DoNER and ICC.
Chidambaram said the Central government was offering support to all state governments in the region to ensure that extortion does not take place and kidnapping for extortion does not take place.
"During the last year, these incidents have come down dramatically and I am confident that in 2012, the situation will be better," he said.