The Indian Air Force veteran, in an interview to PTI, suggested a slew of methods, which, he said, could be "better accomplished" under a few months of Governor's Rule.
"Hard decisions will have to be taken...It (the situation) demands something which others feel we as a nation lack: Ruthlessness," he said.
Naik, who was the IAF chief from 2009 to 2011, said there had to be a "more effective use" of air power, so far "underutilised" in the valley.
"This is a proxy war and proxy war is a dirty war. It is played in a dirty way," Rawat told PTI last month.
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Fifty-nine Army personnel have been killed in counter- terror operations in J&K since 2016. Twenty-two infiltration attempts have been foiled so far this year and 34 armed intruders killed on the LoC, according to official figures.
Naik believed "Red Zones" should be declared in infiltration prone areas near the LOC.
"We must start thinking along these lines if we are to control terrorism in the Kashmir valley," he added.
Special forces with a clear mandate needed to be deployed to "seek and destroy" foreign terrorists, said Naik, now leading a retired life in Pune.
"There are around 250 foreign terrorists in the valley. Use special forces with a clear mandate to seek and destroy. This would be possible only if the Army re-establishes the intelligence framework with locals. A few months of Governor's Rule should facilitate this activity," he said.
Naik also stressed the need for a single agency to "collate and manage" intelligence from disparate agencies.
A central data base, he added, was also needed, with face, DNA and fingerprint matching facilities.
"We need cutting-edge forms of communication, too," he said.
The former Navy chief suggested hardware for Kashmir: unmanned air vehicles (UAV), attack helicopters and fixed wing aircraft on the lines of the AC-130 of the US Air Force.
"The resources would be C-130s modified with radar controlled 20 mm gun and a 105 mm howitzer similar to the AC- 130 of the US Air Force. There would be HALE (High Altitude Long Endurance) UAVs on station covering the Red Zones and troubled spots. Attack choppers would be on standby during the day. Special Forces teams would be ready along with Mi-17 choppers to move them," he said.
"In Red Zones, no clearance would be required except to ascertain that they are not our own troops. The same method could be used when large mobs gather," he added.
All this, he said, appeared "simplistic", but was not.
"It will take a lot of planning, lead time, training and practice.It will consume a lot of resources including manpower," he said.
Naik also said the Kashmir issued could not be resolved without improving governance.
"There is a need to streamline working of departments, ensure high efficiency and outreach to people," he said.
"I have mostly spoken of things military but the situation demands a strong political will and public support," he said.
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