New round of Indian kidnap talks

The authorities have agreed to most of Veerappan's demands

The mediator negotiating the release of an abducted Indian film star will hold a third round of talks with the kidnapper - notorious bandit, Veerappan.

Veerappan abducted Mr Rajkumar from his farmhouse in the southern state of Tamil Nadu on 30 July, and has presented a long list of demands for the film star's release.

These include political demands like referring a river dispute between Karnataka and Tamil Nadu to an international arbitrator, and the release of some of Veerappan's jailed associates.

Film idol Rajkumar: Kidnapped nearly a month ago

Journalist RR Gopal, who is negotiating the release, has already made two trips to the jungle hideout of Veerappan - returning from the latest on Thursday.

Mr Gopal brought with him a videotaped message from the bandit, which sought clarifications about the release of 121 of his associates.

Tamil Nadu Chief Minister M Karunanidhi said his government would approach the courts for the release on bail of the associates..

Rehabilitation

Mr Karunanidhi also held a meeting with Karnataka's Chief Minister SM Krishna in which $1m (50m Indian rupees) were set aside for the rehabilitation of victims of alleged police excesses during searches for Veerappan in the past.

"This is a gesture to establish our bona fides, pending the final recommendations of the judicial commission probing the matter," Mr Karunanidhi told Reuters news agency.

The two chief ministers said they had decided to accept some more of Veerappan's demands to ensure the safe release of Mr Rajkumar.

Mr Gopal will return to Veerappan's hideout on Monday with the two governments' responses.

Observers say Mr Gopal's failure to make much progress in Mr Rajkumar's release has disappointed the actor's numerous fans.

The film industry in Karnataka, which shut its business in protest against the kidnapping, has decided to continue the shutdown until the release of the star.

The industry has over 100 movies houses showing films in various Indian languages.