Warning that there has been no let up in attempts to radicalise the youth, home minister P Chidambaram today said a new phenomenon of "saffron terrorism" involved in many bomb blasts has been uncovered.

Inaugurating a conference of chiefs of police forces of the country, Chidambaram also expressed concern over the situation in Kashmir Valley and hoped that in the next few days, a "starting point" would be found to reach out to the protestors and restart the process of a dialogue.

"There is no let up in the attempts to radicalise young men and women in India. Besides, there is recently uncovered phenomenon of saffron terrorism that has been implicated in many bomb blasts of the past," he said.

Chidambaram said beginning 2005 and with the exception of 2008, the law and order situation in J&K has been extremely benign with few incidents and fewer casualties.

Unfortunately since June this year, there has been an unexpected turn of events, he said.

"I am afraid J&K is now caught in a vicious cycle of stone pelting, lathicharge, teargassing and firing, leading to casualties and resulting in more stone pelting," he said.

The Home Minister said the security forces have been instructed to act with great restraint and the situation has not yet returned to normal.

Chidambaram said the Central government has acknowledged that a political solution must be found to the problems of J&K and the Central government has offered a dialogue with all sections of the people and political parties and groups of the state.

"We are concerned that we have not been able to stop the vicious cycle in which the state is caught. However, it is my hope that, in the next few days, we would be able to find that elusive 'starting point' from where we could reach out to the protestors, reassure them of their rights and dignity, restore peace and order, redeem the promises made, and re-start the process of a dialogue that will lead to a solution," he said.

Chidambaram said through 2009 and in the first eight months of 2010, the security situation was severely challenged by forces inimical both within and outside the country.

"Contrary to perceptions in a section of the media - and consequently, among sections of the people - the Indian state has been able to stand up to these challenges and face them with confidence and courage," he said.

The Home Minister said save for one incident, the last 21 months have been remarkably free of any terrorist attack and the attack on the German bakery in Pune was indeed a blot and hoped that the suspects will be apprehended soon.

Referring to the Naxal problem, Chidambaram said despite setbacks, security forces have been able to reassert their control in several Maoist affected districts.

He said this year alone so far 424 civilians have been killed and of these 192 were killed after being named "police informers".

"We have called upon the CPI (Maoist) to abjure violence and come up for talks. I regret to say that there has been no direct and credible response to our offer of talks," he said.