Amid continuing stalemate over the government formation in Jammu and Kashmir, BJP General Secretary Ram Madhav on Monday said talks between BJP and PDP are going on.

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"We are communicating with each other. It is not that communication between us has broken down," Madhav, who had played a key role in forging the alliance, said. BJP sources sounded hopeful of resurrecting the alliance that ruled the state for over 10 months under Mufti Mohammad Sayeed but the two parties have been unable to come together after his daughter Mehbooba Mufti took over PDP following his death.

Asked about new conditions put forth by PDP for the resumption of alliance, they said BJP had shared its views too with the regional party and talks were continuing. PDP is believed to be asking the central government to make some concessions on its Kashmir-centric political agenda, including relaxation in controversial Armed Forces (Special Powers) Act, a demand the BJP has rejected in the past.

PDP is also pushing for more financial assistance to the state from the Centre. The regional party apprehends that its alliance with BJP has cost it some popular support and it can recover the lost ground only by pushing its core agenda.