Militants, commandos fight on in India's Mumbai

By Krittivas Mukherjee

MUMBAI (Reuters) - Indian commandos fought to regain control of Mumbai on Friday, more than 24 hours after heavily armed militants killed at least 119 people and wounded more than 300 others in coordinated attacks in the commercial capital.

Prime Minister Manmohan Singh pinned blame for the attacks on militant groups based in India's neighbors -- usually an allusion to Pakistan -- raising prospects of renewed tension between the nuclear-armed rivals.

He warned of "a cost" if these nations did not take action to stop their territory being used to launch such attacks.

An estimated 25 men armed with assault rifles and grenades -- at least some of whom arrived by sea -- fanned out across Mumbai on Wednesday night to attack sites popular with tourists and businessmen, including the city's top two luxury hotels.

At least six foreigners, including one Australian, a Briton, an Italian and a Japanese national, were killed. Scores of others were trapped in the fighting or were being held hostage.

Commandos battled the militants through Thursday -- often room to room in the hotels -- to rescue people, police said. Flames billowed out of the buildings and loud explosions were heard during the fighting.

Dipak Dutta told NDTV news after being rescued at the Taj Mahal hotel that he had been told by troops escorting him through the corridors not to look down at any of the bodies.

"A lot of chef trainees were massacred in the kitchen," he said.

The city of nearly 18 million people, the nerve-center of India's growing economic prowess and home to the "Bollywood" film industry, was virtually shut down on Thursday as the battles raged.

Sporadic gunfire and explosions could be heard early on Friday, and authorities said at least one militant was still holed up in the Taj Mahal hotel and several more in the nearby Oberoi-Trident hotel. Many staff and guests were also trapped, but it was not clear how many.

"It is evident that the group which carried out these attacks, based outside the country, had come with single-minded determination to create havoc in the commercial capital of the country," Prime Minister Singh said in a televised address.

"We will take up strongly with our neighbors that the use of their territory for launching attacks on us will not be tolerated, and that there would be a cost if suitable measures are not taken by them."

Pakistan, condemning the assault, promised full cooperation.

FOREIGN INVESTMENT

Hindu-dominated India, which has a sizeable Muslim minority, has been hit by militant attacks for decades. But this strike appeared aimed at crippling its ability to attract foreign investment.