The Punjab cabinet on Friday rejected the proposal of the Union government to set up the National Counter-Terrorism Centre (NCTC) terming it "against the concept of federalism".

The cabinet, in its last meeting before the formation of a new government next month, met here under the chairmanship of Chief Minister Parkash Singh Badal.

The cabinet opined that setting up of NCTC was against the concept of federalism and encroaches upon the rights of the state governments.

Earlier on February 17, SAD patron Parkash Singh Badal had reacted strongly against the proposal to set up NCTC describing it as "a directly collaborationist measure by the Centre in an attempt to usurp whatever is left of the states' authority in matters of governance".

Toughening its stand on counter-terrorism, the Union government had earlier this month, decided to operationalise the National Counter-Terrorism Centre (NCTC), a body meant to coordinate operations against terror groups, from March one.

But it has since faced fierce opposition from many states across the country.