With neither Karnataka nor Tamil Nadu showing any inclination to concede much on a fresh proposal by the Centre to resolve the dispute at the talks held over two sessions, it was decided to resume discussions tomorrow. But indications are that the Prime Minister would find it very difficult to get the two states to agree.

Officially, however, the parleys was described as ``productive''. Tamil Nadu Chief Minister M Karunanidhi's response after the meeting was that it was ``progressing'' while his Karnataka counterpart J H Patel only said that they would have another round of talks tomorrow.

The Centre's new proposal, mooted at the meeting by Deputy Chairman of the Planning Commission Jaswant Singh who was also present, involves the setting up of an authorityunder the chairmanship of the Prime Minister with the chief ministers of the two states and Kerala and Pondicherry as its members.Another monitoring committee with the Union Water Resources Secretary as its chairman and chief secretaries of the four states and the chairman of the Central Water Commission as its members has also been proposed.

While Patel was more or less amenable to the idea, Karunanidhi had serious reservations about the monitoring committee which he wanted to be invested with statutory powers. He also wanted all the powers that were mooted for the Cauvery river valley authority in the original draft scheme to be given to it. He however did not disagree with the proposal for the setting up of an authority under the Prime Minister's chairmanship.

Karnataka's argument was that the monitoring committee should only be advisory in nature. The talks were basically deadlocked on this point.The Centre has also proposed that the authority would take decisions only by consensus and not on thebasis of majority.