"Negotiations are going on at various levels to resolve the issue peacefully," defence minister AK Antony said.
"Our government will take every step to protect the national integrity and security," he added. It is learnt that national security adviser Shiv Shankar Menon was in touch with Chinese State Councilor Yang Jiechi over the issue.
Consequently, it is also learnt that the visits of Chinese premier, Li Keqiang to India in third week of May and that of external affairs minister Salman Khurshid to Beijing in the second week, may stay the course. However, sources point out that the PMO is yet to give permission for Khurshid's visit.
Rather than let these visits get marred by the border tension, India wants to use them as diplomatic engagements to address the differences and build on the convergences.
A third flag meeting, most probably on Friday, is expected to make "progress" in resolving the stalemate even as China denied having made incursion and wanted Indian activities on the border areas to the stopped at the last flag meeting.
At the flag meeting on Tuesday, the Chinese also raised concerns about Indian activities near the border, including some infrastructure projects. The Chinese also held Indians making similar transgression due to the difference in perception about the LAC and having military posts, which are against the mutual understanding. But government sources said there are enough bilateral protocols-from the 1996 CBM to 2005 protocol-- to deal with all sorts of issues of "transgressions."