Jammu and Kashmir Chief Minister Ghulam Nabi Azad on Saturday ruled out the withdrawal of the army from the valley.

He said that both violence and cross-border infiltration had increased during the last three months.

"During the last three months, 110 civilians were killed while the security forces eliminated 146 militants. 370 violent incidents took place while the cross border infiltration into the state had also gone up by several dozens as compared to the corresponding period last year," Azad said.

"It is a difficult situation. When Mufti Mohammad Sayeed raised the demand for the withdrawal of the army from the civilian areas of the state in January-February, the levels of violence were low," Azad said.

These days, the chief minister said, various political parties and the separatist All Parties Hurriyat Conference leaders had been holding public meetings in the Valley.

"Such rallies are possible only when security forces dominate these areas. It is only the army that can do it. I cannot withdraw the army from a certain area because the militants would then control those areas and later a larger number of troops would be needed dislodge them," he said.

The chief minister also spoke of the unilateral ceasefire announced by the then NDA government against the militants here in 2001.

"The militants used that period to regroup and reorganise. After the withdrawal of the ceasefire, the militants carried out deadly attacks like those on the country's Parliament and the state Assembly," he said.

Azad also said the next Assembly elections in the state would be held as per the schedule next year. He called reports of these elections being held later this year as rumours.

"We are spending Rs 4000 crore for infrastructure building this year and the next year. Years 2007 and 2008 would therefore be called the developmental years for Jammu and Kashmir," he said.