NEW DELHI (Agencies) Days after India proposed Foreign Secretary-level talks with Pakistan, Indian government sources on Monday said that New Delhi was prepared to discuss issues like Kashmir and Balochistan with Islamabad but warned that there will be a huge setback if 26/11 is repeated. As India awaits Pakistans response to its proposal to hold the Foreign Secretary-level talks here on February 18 or 25, the sources said that New Delhi would continue to be firm on its stand that any meaningful dialogue with Islamabad would be possible only in an environment free of terror. Investigating the Mumbai 26/11 attacks, trying the plotters in Pakistan, cross-border terrorism, the recent spurt in alleged LoC infiltration and last weeks meeting of Kashmiri groups in Muzaffarabad are among the issues New Delhi is keen to raise with Islamabad when the Foreign Secretaries of the two countries meet here. The Foreign Secretary-level talks would not mean resumption of composite dialogue even though India is ready to discuss whatever issue Pakistan raises, including Balochistan and Kashmir, as it wants to deal with the situation in a mature and confident manner, Zee News and Deccan Herald quoted sources as saying. Our position on Kashmir is well-known and we have nothing to hide on Balochistan, said a senior government official. The Foreign Secretary-level talks are not composite dialogue but just dialogue to unlock the channels of communication frozen since 26/11 attacks, they said. The offer of talks is a practical and pragmatic approach to seek redressal of Indias concerns with regard to cross-border terrorism, they stated, adding that the intention is to convey Indias point of view directly to the Pakistani establishment rather than firing salvos. With regard to Pakistans allegation about Indian interference in Balochistan through Afghanistan, the sources said the government underlines that Pakistan has misplaced notions about Indias activities in Afghanistan as there are only developmental works going on there. Pakistan needs to shed this paranoia. Rejecting Pakistans contention that it would not be able to prevent a repeat of 26/11, the sources said that if such an incident takes place again, there would be a huge setback to the efforts to normalise relations. The sources underlined that meaningful dialogue cannot take place in an environment of terror or even the threat of terror and put the onus on Pakistan government to address these issues. Pakistan must take all necessary steps to prevent any incident like Mumbai attacks, the sources said, adding that Indias disappointment over Pakistans inaction over the public provocative speeches will be put across the Foreign Secretary talks. But we need to talk to each other, rather than at each other, the sources said. However, they added, for any meaningful talks, Pakistan will have to be conscious and sensitive to Indias concerns and crack down on terror groups and individuals. Rejecting the contention that timing for the talks was premature, the sources noted that Pakistan had taken some steps to prosecute seven of those involved in 26/11 attacks but underlines that the process has to be taken to logical conclusion in terms of punishing them and unveiling the entire conspiracy. There is need to build trust and confidence in the complex relations, they said. We have to give peace a chance, the sources said while noting India was not entering talks with any illusions. The sources revealed that Indian Foreign Secretary Nirupama Rao had been in touch with her Pakistani counterpart Salman Bashir, talking over phone, even before she invited him to Delhi for talks about a week back, discussing how to unlock the process of engagement. Relations between countries never remain static but these are dynamic... We cant completely erase what makes relations exist between neighbours, they said. Dialogue is the only way forward to seek redressal to our concerns... Engaging Pakistan is the only way forward, they said, adding that the FS-level talks were intended to deal with various aspects of the relationship like people-to-people contacts, confidence building, trade and consular access. Our Monitoring Desk adds: Indian Home Minister P Chidambaram has said that New Delhi has not linked talks with Pakistan with the arrest of Jamaat-ud-Dawa chief Hafiz Muhammad Saeed. While talking to media at the end of a conference of chief ministers of three eastern Indian states to draw up the details of a joint security operation against the Maoists on Monday, he said, The government of India, at the best of my understanding, has offered Islamabad unconditional talks not linked with Hafiz Saeeds arrest. Responding to a query, Chidambaram said that Hafiz Saeed and Salahuddin were exponents of tyrant forces and, We will defeat them whenever and wherever we confront them.