A joint statement issued after over four hours of talks between official-level delegations of the two sides said ``the discussions were held in a frank and constructive atmosphere while reaffirming their commitment to Indus Water Treaty of 1960.''

It said both sides exchanged views and took note of the discussions on the subject held between October 1987 and August 1992. The two sides would meet again at a mutually convenient time ``with a view to finding a solution to the issue.''

The statement said future discussions would continue on the navigation project consistent with the provisions of the Indus Water Treaty signed between the two neighbours under the aegis of the World Bank.

Officials said discussions were held in a bid to bridge the differences over the project as the two sidescommenced a nine-day second phase of official-level talks on outstanding issues that included Siachen and Sir Creek Maritime Dispute.

While the Indian Delegation for the talks is being led by Z Hassan, Secretary, Water Resources, the Pakistani team is being headed by Syed Shahid Hussain, Water and Power Secretary.

Work on the project, which started in 1984, has been kept in abeyance since 1987 with Pakistan raising objections on water-sharing by invoking the Indus Waters Treaty.

Both sides outlined their respective positions before starting negotiations on bridging differences over the proposed construction of the barrage on the Jhelum river, downstream from Wullar Barrage, officials said.

New Delhi has made it abundantly clear to Pakistan that the project is squarely in keeping with the Indus Waters Treaty and hence Pakistan should have no objections to it.

The construction of the project is essential to sustain navigation throughout the year between Wullar Lake and the Sopore section, especiallyin winter.

The second phase of the stalled talks, which began in Islamabad between the foreign secretaries of the two countries last month, will also discuss five other identified issues -- Siachen, Sir Creek maritime boundary dispute, economic and commercial cooperation, terrorism and drug trafficking and promotion of friendly exchanges in various fields.

Meanwhile, four people were injured in renewed shelling by Pakistani troops in Kargil town of frontier Ladakh region today, a defence spokesman said.

The Pakistani troops continued to target Kargil town and its adjoining areas with mortar fire and shells, the spokesman said.

Four civilians were injured in Idgah area of the town, he said, adding Indian troops also retaliated effectively.

While Indian troops destroyed one Pakistani bunker at Siachen Glacier last evening, two Indian bunkers were damaged in Batallick area of Kargil district during the exchange of firing, he said.

Heavy firing exchanges between two sides were continuing in Tangdhararea of Kashmir Valley. Details of any casualties or damage to property in the latest firing.

Siachen talks today