NEW DELHI, Nov 16: India's Cabinet Committee on Security (CCS) announced on Tuesday that troop reduction in Jammu and Kashmir would start from Wednesday, the day Prime Minister Dr Manmohan Singh begins his first visit to the disputed region.

The de-induction will begin from Anantnag, the constituency of Chief Minister Mufti Mohammad Sayeed. Informed sources said Dr Singh was also likely to announce a major economic package and a speeding up of the proposal to start a Srinagar-Muzaffarabad bus service.

Army officials said the numbers and arrangements for the troop reduction were still being worked out, however, the first batch of troops would be de-inducted from Srinagar Cantonment.

The blueprint for the de-induction was discussed at the CCS meeting presided over by Prime Minister Singh who had earlier described the move as containing acceptable risks.

The Press Trust of India quoted army officials as saying the troops reduction might also include de-induction of paramilitary forces who maintain the security vigil in main towns in the valley. Defence Minister Pranab Mukherjee did not attend the meeting as he was away watching naval manoeuvres off Mumbai coast, the PTI said.

Dr Singh's visit to Jammu and Kashmir comes shortly before his first meeting in New Delhi with Prime Minister Shaukat Aziz on Nov 23. There have been newspaper reports that the two prime ministers would discuss the proposal presented by President Gen Pervez Musharraf recently on ways to resolve the Kashmir dispute.

While Mr Natwar Singh has said that India would be quite prepared to discuss the ideas if they are formally presented, Mr Dixit gave inkling into New Delhi's approach to the issue.

"It's a trial balloon and (Gen Musharraf) said as much," Mr Dixit toldTehelkaweekly at the weekend. He recalled that the ideas stemmed from the meeting between Dr Singh and Gen Musharraf in New York.

Dr Singh had said that "you keep saying you have many options and so why don't you tell us what these options are," Mr Dixit said.

"We are still waiting for formal intimation of what these options are and then we'll think of our own options. There is no point commenting on anything that hasn't come to us. What I can say is that after Kargil, we are clear that everything - all the issues - will be part of an integrated package."

Mr Natwar Singh said on Monday that India would give the forthcoming talks with Pakistan its 'best shot', but a 'miracle' cannot be expected.

"Yeh to 57 saal se chala aa raha hai. Toh koi chamatkar toh hoga nahin. Hamari puri koshish chal rahi hai (The problem has been continuing for 57 years. So there will be no miracle. We are trying our best)."

Mr Natwar Singh said the atmosphere was conducive for talks between the two countries. When asked whether he was optimistic or pessimistic about Prime Minister Shaukat Aziz's visit, Mr Singh said: "I do not look at it in those terms. We are looking in terms of realism and we are giving it our best shot."

He was talking to reporters after flagging off the Asean Car Rally here.

AGENCIES ADD: The army has not yet said officially that how many troops will be removed from Kashmir but senior army sources said 15,000-20,000 security personnel could be withdrawn. Military experts estimate India has about 250,000 troops in Kashmir. "About 20,000 soldiers will be pulled out in a phased manner and systematically," a military official said.