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JAMMU, India, Thursday (AFP) Several Islamic militants from different rebel groups in Kashmir have broken away to form an alliance in order to hold peace negotiations with the newly-elected Kashmir state government.

The group, called the Jammu Kashmir Sujat Alliance, has members from around 20 rebel outfits including Jaish-e-Mohammad, Al Jehad, Hizb Islami, Itehad Islami.

The chairman of the group, Nissar Ali, told reporters top rebel leaders they had come together with the hope of achieving a breakthrough to the Kashmir problem.

"We have not given up the gun, but we will await the response from the government," Ali said.

He said positive measures by the state government, which came to power last month following elections, such as the release of a number of jailed Kashmiri rebels, had encouraged them to take the step.

Ali urged the government to free all rebels from prison and rehabilitate them to create a conducive atmosphere for restoring peace in the region where a Muslim rebellion against Indian rule has cost 36,500 lives since 1989.

"Our message to the government is this: stop following the policy of simply exchanging bullet with another bullet if you are sincerely interested in a dialogue with us," Ali said.

Security force officials in Kashmir said Ali's claim of having the backing of so many militant leaders would need to be examined, but admitted that such an outfit could emerge as a powerful grouping.

The chief minister of Kashmir's new government, Mufti Mohammed Sayeed has promised to provide a "healing touch" to solve the region's insurgency problem.

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