Militants belonging to the banned United Liberation Front of Asom shot dead a tea executive in Assam at around 2000 IST on Saturday.

The killing has dealt a serious blow to the tottering peace initiative in the state.

The police said two ULFA militants shot dead Harendra Nath Das, manager of Holonghabi Tea Estate in Tinsukia district, at the gate of his official bungalow.

The police suspected that the executive failed to comply with ULFA's extortion demand.

A senior police official said that the incident would further dim chances of another extension of the unilateral suspension of Army operation by the central government.

On Friday ULFA militants shot dead a policeman during an attack on a police search party at Napam under Borboruah police station in Dibrugarh district.

The two incidents have punctured the temporary lull in violence since August 14 last when the government first announced temporary suspension of army operation to facilitate ULFA leadership to send in the 'letter of commitment' for direct talks in response to the current peace initiative in the state.

The ULFA is yet to send in the letter of commitment to the government although the third suspension of army operation expired on September 20.

The ULFA maintains that it wants the release of five of its senior leaders from jail before it decides on the talks.