Manmohan urges rebels in restive northeast to lay down arms

"Eschew violence and join the constitutional process for effective solution," Singh told a rally in Imphal, capital of Manipur state.

"It is not proper to resort to armed struggle when grievances can be redressed through talks. I appeal to all sections of society and youth for nation building to usher a new era of peace and prosperity in Manipur. There'll be development only when there is peace and order in the region," he added.

Singh, who is on a three-day visit to the region of seven states, also known as the "seven sisters", is expected to announce a development package that could match one he offered this week to rebuild insurgency-ravaged Kashmir, an official in his office told AFP.

Around 30 rebel outfits are operating in the northeast, seeking secession, greater autonomy or independence. They say New Delhi exploits the region which is rich in oil, tea and timber.

Violence in the area has claimed tens of thousands of lives since India's independence in 1947.

Indian troops were on high alert after several separatist outfits called a "boycott" of the visit with the outlawed Revolutionary People's Front of Manipur calling a 24-hour "public curfew".

In Imphal, Singh was also due to formally hand over to the local government the Kangla Fort, a symbol of the province's rich culture and traditions.

The fort, which has served as the headquarters of the paramilitary Assam Rifles, was the palace of the Manipuri royalty when in 1891 the British forces defeated the local king and converted it into a garrison.

Singh's visit has evoked tremendous interest with expectations high in the region.

During his Wednesday-Thursday trip to disputed Kashmir, Singh offered 5.3 billion dollars for development and announced the end of a ban on recruitment to government jobs.

Manipur Chief Minister Okram Ibobi Singh told AFP he expected Singh to make similar positive gestures by announcing an economic package and employment generation schemes.