Bahuguna made the announcement at a workshop on internal security here attended by senior police officials, including the DGP.
Citing lack of development as a major reason for growth of Maoist activities anywhere in the country, Bahuguna said effective implementation of the historic Food Security Act and MNREGA can be potent tools to combat red terror.
He also laid emphasis on better coordination among intelligence and law enforcing agencies and stepped up vigilance along the borders for better handling of the situation in Maoist strongholds.
DGP B S Siddhu said Maoist activities have not been sighted so far in Uttarakhand but the fact that some of the areas in its Kumaon region are located close to the Nepal border where Maoist elements are united and active cannot be ignored.
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"Anti-India sentiments are being stoked by Maoist elements in Nepal and we will have to remain vigilant," he said.
A Special Operation Task Force (SOTF) has been set up considering the vulnerability of the state's Kumaon region to Maoist activities, he said.
So far 16 persons accused of being involved in Maoist activities in the state have been arrested out of which two died while on bail. 14 of them are out on bail at present but the police and intelligence departments are keeping a tab on their movements, the DGP said.