With the Indo-Pak dialogue process hit by last month's Mumbai blasts, the house arrest of LeT founder Hafeez Mohammed Sayeed in Lahore on Thursday is seen as a welcome development in New Delhi.
There was no formal reaction to the arrest of Sayeed who currently heads Jamaat-ud-Dawa (JD), the new incarnation of the banned LeT but officials here see the month-long detention as a positive signal.
The dialogue between the Foreign Secretaries of the two countries, which was expected to have been held last month, did not take place after the Mumbai blasts that had left about 200 people dead.
India has made clear to Pakistan that unless it gave concrete indications of reigning in militant organisations operating from its soil, resumption of the dialogue would not be acceptable to public opinion in India. Detention of Sayeed has been welcomed in this context.
Reports in the Pakistani media that India had given a "non-paper" to Pakistan envisaging the return of Jammu and Kashmir to pre-1953 status which granted it autonomy in most subjects, have been rubbished by officials here but they confirmed that certain ideas for cross-LoC linkages had been passed on to Islamabad through back channels.
Such linkages and a consultative mechanism would address shared issues such as tourism promotion and utilisation of water on both sides of the LoC but there was no question of a joint control or joint management as was being suggested in Pakistan, the officials stressed.
New Delhi has also raised with Islamabad the question of self-governance mechanism in the territory of Jammu and Kashmir under its control such as the so-called Azad Kashmir and northern areas.
It has recalled that the Indian state of Jammu and Kashmir had representative institutions of self-governance.