The war on terror in Mumbai was on Saturday wrapped up by the security forces who eliminated three terrorists in Taj hotel after 60 hours of intense battle with the band of ultras who struck the country's financial capital killing 195 people.

"All operations are over. The NSG has formally reported that the operations are complete and now Taj, Oberoi and Nariman House are being sanitised. There are no more terrorists now in Mumbai. All have been liquidated or captured alive," M L Kumawat, Special Secretary in the Union Home Ministry told reporters in Delhi.

Mumbai disaster official R Jadhav told that 195 people had been killed and nearly 300 injured in the battle, which began when the dozen or so militants split into groups to attack multiple targets across the city, including the main railway station and a hospital.

The magnitude of the attack by suspected Lashkar-e- Taiba elements, who are believed to have come by the sea route from Karachi, could be gauged from the statement of Deputy Chief Minister of Maharashtra R R Patil who said with the ammunition the terrorists had, they could have killed 5,000 people.

The elimination of the three terrorists in Taj came on Saturday morning after intense battle between the commandos, who believed there was a lone gunman holding out, and the terrorists who kept exploding grenades at periodic intervals.

In all, nine terrorists were killed while one was captured alive in "Operation Tornado" executed by the NSG alongwith the army and naval commandos and Maharashtra police.

At least 60 people were killed and dozens more injured Wednesday night in seven synchronized attacks in Mumbai, India's commercial capital, police said.

A senior police official in the city later said gunmen were holding hostages at two luxury hotels.

The shootings and explosions took place in the heart of the city's affluent southern section. At least two of the attacks targeted five-star hotels.

About 10:30 p.m., witnesses told reporters, two men fired automatic weapons outside the Cafe Leopold restaurant, which is popular with foreigners, then moved toward the five-star Taj Majal hotel while continuing to fire indiscriminately. The gunmen also reached the Oberoi hotel, the city's main Chhatrapati Shivaji Terminus station and a hospital.

Witnesses said the gunmen initially asked for British and American nationals. About 10 Americans and Britons were believed to be trapped in the Taj Mahal hotel late Wednesday.

The historic civil nuclear deal between the US and India is running into serious difficulties over New Delhi’s insistence that the Bush administration rewrite elements of the law enacted by Congress last year.
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According to people close to the talks, Indian negotiators are contesting a clause in the law which states that the US would withdraw civil nuclear fuel supplies and equipment if India breached its unilateral moratorium on nuclear testing. India is also insisting that it be given the explicit right to reprocess nuclear fuel – again, in contradiction of the US law.

Observers say India’s tough stance stems in part from the political weakness of Mr Singh, whose Congress Party has lost recent state elections and whose own position has always been parlous. Mr Singh faces opposition from his coalition government’s allies in the communist bloc of parties and also from leading nuclear scientists.

... most people involved in the talks believe that India would eventually agree to a deal if the alternative was nothing at all. They say that the state department is simply getting used to New Delhi’s inimitable style of negotiating.