NEW DELHI: India and China have agreed to work towards preparing a bilateral pact on defence cooperation and operationalise a military hotline after defence minister Nirmala Sitharaman held talks with her Chinese counterpart General Wei Fenghe in New Delhi on Thursday.

The delegation-level talks also agreed for more interactions between the two militaries. The Chinese side suggested installation of more than one military hotline, including between the local commands, according to a statement issued by the defence ministry. A new memorandum of understanding will replace the 2006 pact where the two nations agreed to have regular military exchanges and joint military exercises. Wei is on a visit to India from August 21 to 24.

The two sides agreed to create the hotline at the level of the Director General of Military Operations, a source said. The Indian Army had insisted that the hotline should be between the DGMO and his PLA equivalent but China has proposed that the commander of its Western Theatre Command located next to India should engage with the Indian DGMO. China also suggested to have about two to three military hotlines with India. “They have suggested to have it at the local command level as well, such as between Northern Command and its counterpart,” the source said.

Sitharaman explained challenges due to cross-border terrorism, views on bringing peace in Afghanistan and freedom of navigation in South China Sea. She also raised the issue of the CPEC which passes through Pakistan-occupied Kashmir. The two agreed to enhance ‘port calls’ (stop for a ship on a scheduled journey for supplies and fuel).

“The Indian Defence Minister also invited China to send one of the chiefs of their forces to India,” said sources.

Sources also said that at the talks Sitharaman had explained to her counterpart on developing border areas in Indian territory with better connectivity, water supply, irrigation and electricity. She added to her counterpart that such measures should not be viewed with doubt. “However, China said that it should not affect our national interest,” said sources.

India, on the other hand, raised the issue of the China Pakistan Economic Corridor and how it affects India’s sovereign rights. “But this time, China said that its good for the economic development of the region,” said sources.

The $46 billion worth CPEC which is a collection of infrastructure projects will connect China’s Xinjiang province with Pakistan’s Gwadar port in Baluchistan. It, however, passes through Pakistan-Occupied Kashmir, which challenges Indian sovereignty.

Nevertheless, although there was no mention of additional Border Personnel Meeting points, China during the talks focused on having greater interaction at the local unit, brigade and command levels. “It was agreed to work towards full implementation of ongoing confidence building measures as well as greater interactions at the working level to ensure the maintenance of peace and tranquillity,” read the ministry statement.

The Chinese defence minister had also suggested that there should be a mechanism for regularly interacting at least once in six months at any level.

China also added that the 2017 Doklam standoff was handled in a good way and be used as an example to sort out border issues with “rationality and maturity”.

The two sides also decided to expand the engagement between their armed forces through training and joint exercises.