New Delhi: Government has no plans to declare a ceasefire in military operations against ultras in Jammu and Kashmir, Defence Minister George Fernandes said today (Jan 29, 2004).

He also said his ministry had proposed a substantial defence capital outlay in the vote of account for major arm procurements.

"There is no proposal to announce any ceasefire in operations against militants, even as an Eid gesture. Nobody has mooted it," Fernandes said.

To a question if such a gesture would be a radical proposal or seen as a gift, Fernandes told reporters on the sidelines of the sixth Asian Security Conference that this would depend on circumstances.

On whether India saw any change in mindset of Pakistan military in the wake of recent Indo-Pak thaw, the Defence Minister said, "I have reasons to believe so."

Fernandes said New Delhi foresaw much greater interaction with Islamabad in the coming months. This would mainly focus on bilateral trade and commerce. He sidelined queries on whether India proposed to make any military concessions to Pakistan.

Elaborating on the defence purchases, the Minister said Government plans to go ahead with the current modernisation and procurement drive and that his ministry had proposed a substantial defence capital outlay for this purpose.