"No foreign money coming to Maoists but there are evidences that the weapons are being smuggled from abroad... from across Myanmar border and from across Bangladesh border," Chidambaram said during Question Hour in the Rajya Sabha.
He informed the House that states has been asked to quicken the pace of development to provide facilities to the areas affected by the Naxal menace.
"An Integrated Action Plan (IAP) is being made by the Planning Commission for the development of Naxal-hit districts," he said
"The plan panel has been asked to enlarge the scope of the IAP to cover maximum number of the 83 Naxal-affected districts in seven states," he added.
He further said unified command would be set up in Chhattisgarh, West Bengal, Jharkhand and Orissa to deal with the Naxal problem. Chhattisgarh already has such a command.
"The unified command will be headed by Chief Secretary and comprise DGP, Development Commissioner, IG Operations from CRPF, IG Naxal Operations, a retired army major general and representatives of intelligence agencies," he added.
He said counter insurgency and anti terrorism schools have been set up to give training to state police forces.
Besides this, he said army is providing training to security forces in jungle warfare.
He also rubbished the reports of terrorists having better equipments and said the para military forces are better equipped to take on the challenge of Naxals.
On the issue of Naga blockage, Chidambaram said: "The security has been heightened along the blocked National Highway-39 in Manipur, after Naga groups blocked the road link for 20 days.