Naxal terrorists set off several blasts at the National Mineral Development Corporation (NMDC) installation in Dantewada district badly affecting the transportation of iron ore in Andhra Pradesh. They destroyed mining equipment, conveyor belts, and looted arms and explosives from these facilities. In similar but separate incidents, 300 armed terrorists attacked two contractors near Kirandul, about 450 kilometers from Raipur and took the employees hostage after looting mining explosives and burning down three tractors. They also took many employees hostage to terrorize them and to extort money from the Government. Andhra Pradesh slipped back into chaos after Chief Minister Y.S.R. Reddy started negotiations with terrorists without expecting them to disarm. The Peoples War Group as it was called then, reorganized itself, redeployed cadres, and expanded operations during negotiations. Since Reddy had move most of the policemen with intimate knowledge of the area from their posts, newer police officials are still learning the terrain and setting up the intelligence network. Clearly, this is one more instance that bolsters the case of moving police out of the ambit of politicians seeking narrow gain for themselves.