After killing scores of anti-Naxal tribal civilians, hundreds of armed Maoist terrorists in Andhra Pradesh blew up a bus, attacked a village killing 8 people, injuring 20, and taking 15 people hostage. After he assumed power, Andhra Pradesh Chief Minister Y.S. Rajashekara Reddy ill advisedly entered into negotiations with terrorists without demanding their renunciation of arms. After much thought out and sustained operations, his predecessor Chandra Babu Naidu had marginalized the terrorists to a point of insignificance. However, Reddy known for his other populist and disastrous ideas that have bankrupted many state agencies, appeased the terrorists by transferring effective police officers, dismantling intelligence networks, and allowing free movement of terrorists. The Naxals used this space to recruit, regroup, train, and create new bases for attacks police and soft targets in Maharashtra, Madhya Pradesh, Chhattisgarh, Orissa, and Karnataka. Following large protests from these states and the collapse of the dialogue process, Reddy has been ineffective in restarting operations and bringing out law and order. AP capital Hyderabad is being seen as a viable alternative to infrastructure-bankrupt Bangalore by many new and expansion plans of high-end companies. Increased violence in that state and its use to mount terror attacks on neighbors, may seriously compromise this advantage that Hyderabad has. Chhattisgarh Chief Minister Raman Singh and Federal agencies have promised stronger action and arming of locals to fight the communist terrorists