India and Pakistan on Thursday braced for yet another confrontation as official level talks failed to resolve differences over the 450MW Baglihar hydro electric project undertaken by India over river Chenab in Jammu and Kashmir as Islamabad threatened to demand appointment of neutral experts to examine the issue.

The seven-member Indian delegation led by the chairman of the Indus Water Commissioner A C Gupta left for Delhi on Thursday after two days of hectic talks.

The talks failed to break the deadlock and Islamabad has decided to evoke its right under the 1960 Indus Water Treaty to demand appointment of neutral experts, preferably under the aegis of the United Nations, a Pakistan foreign ministry spokesman said in Islamabad.

It cited India's reluctance to resolve differences as the reason for Pakistan's decision to seek neutral experts.

One of the points of contention is the design of the Baglihar Hydroelectric Plant, the statement said. The Baglihar project was due to be completed in 2004.

According to Article IX (2) (A) of the Indus Water treaty, which Pakistan threatened to invoke, there is a provision for appointment of neutral experts to help examine differences.

After that the two governments could establish a court of arbitration to resolve the issue.

Besides Gupta, the Indian delegation included A D Bhardwaj, Narinder Singh, Dharam Vir Thareja, Abdul Gani Malik, G A Ranganathan and Chandra Kumar Laldas.