By Syed Zarir Hussain,

Guwahati, Sep 25 (IANS) Indian soldiers Sunday resumed operations against the outlawed United Liberation Front of Asom (ULFA) in the northeastern state of Assam after the central government called off a 40-day ceasefire Wednesday, threatening a fragile peace process in the region.

The military operation targeted the dominant separatist outfit again with the Indian government blaming it for killing a policeman and a plantation manager over the weekend and serving extortion demands.

"The central government has decided to call off the truce and resume military operations against the ULFA in view of the stepped up attacks and extortion drive by the rebels," Assam Chief Secretary S.K. Kabilan told IANS.

Troops of the 2nd Mountain Division based at Dinjan in eastern Assam were Sunday engaged in a gun battle with the ULFA in the Lakhipathar area in Tinsukia district.

"We are yet to get details of the operations," a senior police official who wished not to be identified said.

New Delhi Aug 13 announced suspension of military operations against the ULFA for 10 days to facilitate holding direct peace talks with the rebel leadership. The ceasefire was extended thrice and expired Wednesday.

The ULFA too reciprocated the government's "goodwill gesture" by announcing cessation of hostilities for an indefinite period.

Holding of direct peace talks between the ULFA leadership and government peace negotiators were, however, deadlocked with New Delhi seeking written commitment from the outfit stating that it was ready for direct talks, name the outfit's negotiating team members and specify timeframe for the dialogue.

But the ULFA, fighting for an independent Assamese homeland in the resource-rich state, had said they could not give such a pledge until five jailed rebel leaders were freed.

In September last year, the ULFA had nominated an 11-member People's Consultative Group (PCG), a team of civil society leaders, to begin exploratory talks.

"I don't think the peace process has collapsed, although I must admit this is a very difficult phase. The breakdown of the ceasefire has created a void and it will take sometime before we can get things back on the rails," Indira Goswami, noted Assamese writer and PCG member, told IANS.

There has been angry reaction from the common people in Assam over the ULFA's stepped up attack that led to the ceasefire breakdown.

"This is a real setback for the peace process and the government gave the ULFA enough opportunity to prove their sincerity. But the rebels frustrated the government by negating their gestures," said Arindam Nath, a retired schoolteacher.

More than 10,000 people have lost their lives to insurgency in Assam during the past two decades.