TN and kerala government have to show the way for a political settlement in neighbouring Sri Lanka. They cannot expect Delhi to do everything for them. There are various ways to solve this problem - 1. devolution package to Tamils in Sri Lanka. 2. a new Indian state formed from the tamil part of sri lanka 3. Armed the Tamils in Sri Lanka and let them defend themselves properly.
I have learned recently that the 20,000-40,000 foot soldiers of the LTTE are volunteers. i.e. they are not paid. Thie means that they are fighting for a cause they believe in. I rember reading the war of independence of America - where a rag tag army of volunteer beat the best professional army at that time- the reason being that the rag tag army of volunteer believed in their cause and were willing to inovate in the battle field and more willing to make the untimate sacrifice than the paid british soldiers.
Back to the Tamils foot soldiers in Sri Lanka- I do not believe its fair to called these volunteers terrorist.
It's up to Tamil Nadu and aslo kerala politicians to solve this mess - because of etnicity. If Tamil Nadu/Chennai wants to become the capital of the South, then they cannot expect Delhi politicians to solve a problem specific to the south - the solution has to come from the politicians in the south. And Delhi will listen.