'No compromise on unity during talks with Hurriyat'

"We have no problems in talking to Hurriyat," Advani was quoted as saying by the Press Trust of India (PTI) news agency while addressing troops of the paramilitary Indo-Tibetan Border Police.

"We have been talking to Bodo and Naga groups," he said referring to dialogue New Delhi has been holding with separatist groups in India's northeast.

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"We can as well hold talks with it (Hurriyat). But there will be no compromise on the country's unity and sovereignty," Advani said.

Outlining the contours of the dialogue with the All Parties Hurriyat Conference, Advani said New Delhi would also be willing to hold talks on "decentralisation" of power.

He did not elaborate but in the past New Delhi has hinted that it could consider giving Kashmir's administration more powers, except in key areas such as defence, finance and foreign affairs.

On Wednesday, the Indian government in a dramatic turnaround from its earlier stance said it was willing to hold talks directly with Hurriyat, an amalgam of 27 separatist parties.

New Delhi has previously refused to talk directly to Hurriyat leaders, instead appointing a series of pointmen on Kashmir. Advani now appears himself to head the talks.

The latest moves come as Hurriyat battles with a crisis sparked by bitter divisions among its leadership.

Six weeks ago the alliance unofficially split, with the pro-Pakistan separatist leader Syed Ali Geelani forming a parallel group to that headed by Maulana Abbas Ansari.

Geelani said Ansari, who was elected in July, had no authority to lead the Hurriyat.

Earlier this year N. N. Vohra was named the government's latest negotiator on Kashmir, but the Hurriyat refused to meet him, saying they wanted to talk directly to the government.

The announcement of talks with the Hurriyat coincided with India unveiling a number of proposals to revive a faltering peace process with Pakistan, including the start of a bus service between Indian Kashmir's summer capital Srinagar and Pakistani Kashmir capital Muzaffarabad.

India also proposed starting a ferry service between the Indian and Pakistani port cities of Bombay and Karachi as well as the resumption of bilateral sporting links, particularly cricket.

India accuses Pakistan of backing an armed militant insurgency in Indian Kashmir since 1989, which has claimed more than 39,500 lives. Pakistan denies the claim, but says it extends diplomatic and moral support to these groups.