Bhubaneswar, June 9: The Orissa government today banned the CPI (Maoist) and seven of its front organisations but also held out a “surrender-and-get-paid” carrot to lure their members back into the mainstream.

State home secretary Santosh Kumar said the CPI (Maoist) and seven other outfits ? the Daman Pratirodh Mancha, Revolutionary Democratic Front, Chasi Mulia Samiti, Kui Lewanga Sangha, Jana Natya Mandali, Krantikari Kissan Samiti and the Bal Sangam ? have been declared unlawful under Section 16 of the Criminal Law (Amendment) Act, 1908.

But Kumar clarified that activists would not be arrested. They would be brought to book only if they continued with unlawful activities, interfering with law and order and posing a danger to public peace, he said. The banned outfits would not be able to hold any rallies or public meetings.

Cases relating to minor offences would be withdrawn but the rebels would have to face prosecution in case of serious crimes, the home secretary said.

The cabinet, after deliberating on the Maoist challenge for almost three hours, gave its nod to a multi-pronged strategy to take on the rebels. The attractive rehabilitation package is an important part of the strategy.

Chief secretary Subas Pani said the surrender policy would help bring the Maoists to the mainstream.

Giving up a rocket launcher or a light machine gun would fetch the rebels Rs 15,000 and AK-47s and Insas rifles Rs 10,000. Surrendering arms would also entitle them to a grant of up to Rs 25,000 to construct a house, assistance of Rs 15,000 for marriage and a maximum of Rs 2 lakh as bank loan for self-employment.

The government announced that extremists would get up to Rs 10,000 after their surrender. In addition, they would get Rs 5,000 for giving up .303 rifles, pistols and revolvers, Rs 500 for hand grenades, Rs 3,000 for remote-controlled and improvised explosive devices, Rs 5,000 for wireless sets, Rs 1,000 per kg for explosive material and Rs 10 for each piece of ammunition.

The package also includes allotment of land up to 4 decimals (nearly 3 cottahs), a subsidy of up to Rs 50,000 after repayment of 75 per cent of the loan, and payment of interest after a period of two years from the commencement of the loan term.

The surrendered rebels would be entitled to free treatment in government hospitals.