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Curfew was also re-imposed in two districts of East and West Imphal.
The Assam government is planning to replace Central Armed Police Forces (CAPFs) by Assam police battalions after lifting AFSPA.
PM Modi also said the effect of the BJP's double engine government - i.e. BJP in power at the Centre as well as in a state - is evident in the return of permanent peace and speedy development in Assam.
The move comes three months after the Centre constituted a high-level committee to examine the possibility of lifting the AFSPA in Nagaland.
The notification was issued by the additional secretary in the Home Ministry, Piyush Goyal, who has been named the member secretary in the panel to examine the possibility of the withdrawal of the AFSPA.
Disciplinary action is also likely to be taken against the Army personnel, who were directly involved in the botched-up counter-insurgency operation in Nagaland.
V Kashiho Sangtam said the Armed Forces (Special Powers) Act was oppressive and discriminatory, and must go.