The Congress on Monday claimed the Centre had "miserably failed" in Kashmir and said the government had lost precious time and life before admitting that a "muscular approach" would not work in the Valley.
The party said by appointing an interlocutor for Kashmir, the government had agreed to the Opposition's demand for talks with all stakeholders to bring peace to the Valley.
While former Jammu and Kashmir chief minister Ghulam Nabi Azad said the government had realised the Opposition was right in calling for talks in Kashmir, former Union Home Minister P Chidambaram said the appointment of the interlocutor -- announced by the government today -- was a major victory for those who strongly argued for a political solution.
"From 'No talks' to 'Talks with all stakeholders' is a major victory for those who had strongly argued for a political solution in J&K," Chidambaram tweeted.
In another Tweet, he said, "With appointment of interlocutor, I hope government has finally admitted 'muscular approach' has failed in J&K".
Azad asked why the government had wasted three-and-a- half-years and lost many precious lives before doing something that the Opposition had been demanding all along.
"After having failed miserably" in Kashmir, the government had finally admitted its "blunder", he said.
"We had been demanding from day one that they should talk to all stakeholders and they opposed this demand. After having wasted full three-and-a-half-years and so much loss of life on both sides, they have come to this conclusion," he said, describing the government's think tank as "zero".
The Leader of the Opposition in the Rajya Sabha told reporters the Congress and the Opposition had been saying that demonetisation and GST were "wrong" decisions and now the government was making changes.
"Whatever the Opposition has been saying on Kashmir, GST and on demonetisation is being proved 100 per cent true and this shows the total failure of the Union government and the total non-application of its mind on various national and international issues," Azad said.
Congress spokesperson Manish Tewari said the appointment of a representative to initiate a dialogue with all stakeholders in Jammu and Kashmir indicated that "realists" in the government had prevailed over the "hawks".
"Appointment of an interlocutor in J&K is indicative that realists in government have prevailed over the hawks. Hard Power is not an end but means towards an end," Tewari said on Twitter.
The Centre announced sustained dialogues with all stakeholders in the Valley and appointed former Intelligence Bureau director Dineshwar Sharma as its special representative for the talks.
The CPI said it had to be seen how the government's new move would work.
"The government has taken a U-turn. The Centre's Kashmir policy has been unsuccessful till now," party leader D Raja said.
He added an all-party delegation had suggested that the dialogue process start with all sections.
"The government did not do it then. Good sense has prevailed. We have to see how it will work now," he said.
Meanwhile, Union minister Jitendra Singh said that opposition parties should not politicise the Kashmir issue and extend cooperation instead.
"The dialogue process was always continuing (in J&K). But now attempts have been made to institutionalise the process by appointing a senior officer for a sustained dialogue with all stakeholders in all three regions -- Jammu, Ladakh and Kashmir -- and the rest of India," the minister of state in the Prime Minister's Office.
Earlier in the day, Home Minister Rajanath Singh had said former director of the Intelligence Bureau (IB) Dineshwar Sharma would be the central government's representative to initiate dialogue with all stakeholders in the state.
"It is a welcome step forward in the process which is already going on under the Modi government," said Jitendra Singh, who represents Udhampur constituency of the state in the Lok Sabha.
Referring to certain concerns and objections raised by opposition parties to the Centre's efforts to stabilise Jammu and Kashmir, he said some disgruntled politicians who are down and out are maybe trying to get their pound of flesh but the people of Kashmir, particularly youths are now keen to move ahead as part of the development journey of India led by Prime Minister Narendra Modi.
Jitendra Singh hoped that opposition parties and their leaders will also come forward to cooperate and not politicise the issue, which could harm Kashmir.
To that extent, the announcement is also meant to provide adequate opportunity to the youth of Kashmir to reap the benefits of enormous avenues made available to the rest of country by the Modi government, he said.
"Those who are trying to misguide the youth would try to recall that even this year over 30 boys and girls form militancy-ridden districts of Kashmir paved their way to Indian Institutes of Technology and National Institutes of Technology which is reflective of the Kahsmiri youths' aspiration of being part of growth of new India," the minister said.
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