The report, submitted to the Union Home Ministry, said maoists were aiming at "liberating" 35 per cent of Indian territory by the end of next year, according to official sources.

Thirty-nine Left-wing extremists groups are operating in the India with underground sympathisers and armed cadre active in 15 states while overground supporters exist in seven states, it said.

Throwing light on the funding and arms procurement policy of naxals, the report said the underground groups are in touch with certain militant groups like ULFA in Assam and LTTE in Sri Lanka for procurement of arms and explosives.