The Indian Air Force launched air campaigns on Wednesday morning in the Kargil and Batalik sectors of Indian-administered Kashmir.

The strikes came as India's Defence Minister, George Fernandes, held discussions on the situation in Kashmir with senior officials of the Indian Northern Command army at its Udhampur headquarters.

The BBC's correspondent in Srinagar, Altaf Hussein, says India has been using Mirage 2000 combat aircraft in its operations for the past three days.

(Click here to see a map of the area)

A Defence Ministry spokesman in Srinagar told the BBC that India had killed five Pakistani soldiers in Dras. India has been saying that Pakistani army regulars are among the infiltrators but Pakistan has denied this.

A soldier carries sleeping bags for frontine troops

India's casualties now stand at 60 killed and more than 200 wounded.

Journalists in Srinagar were also shown car bombs which the Indian Army says it recovered from militants in southern Kashmir.

An Indian Army spokesman, Brigadier S K Roychowdhury, said they were to be used against security forces and state politicians.

Pakistan hopes for peace

Foreign Minister Sartaj Aziz: Hopes talks will reduce tension

The Pakistani Foreign Minister, Sartaj Aziz, says he hopes his forthcoming talks in India will stop the situation in Kashmir escalating.

In an interview with the BBC, Mr Aziz said the fact that the talks were taking place was a good step, and he hoped they would reduce tensions.

"I hope the dialogue will be productive and useful," he said.

His remarks follow India's agreement to hold talks in Delhi on Saturday - the first significant attempt by the two sides to defuse the tension.