Weeks after National Security Adviser MK Narayanan blamed Pakistan for continuing to back terrorism in India and hurriedly retracted claiming he had been misquoted, India said Friday Islamabad was not doing enough to stop cross-border terrorism and that could put a "big question mark" on the ongoing peace process.

As the body of M C Puri, who was killed in the shoot-out at the Indian Institute of Science, Bangalore, on Wednesday was cremated Friday amid heartrending scenes (his family -- wife and two children -- all but collapsed during the cremation), India reacted sharply for the first time since the peace process was started after the United Progressive Alliance government came to power.

Official sources in the government said if Pakistan had any "fresh ideas" on self-governance and demilitarisation in Jammu and Kashmir, this could be conveyed through back channels, but maintained that the issue of granting more autonomy was a matter between New Delhi and the state government.

In January, foreign secretaries will meet to begin the third round of the composite dialogue. Days before that, official sources said Pakistan's commitment given at the highest level on ending cross-border terrorism remained to be fulfilled.

"The phenomenon of cross-border terrorism hangs like a big question mark on the peace process," sources said, adding if terror attacks continued, public opinion for the government to carry on with the peace process would "start evaporating".

After the public outrage over the October 29 serial blasts in Delhi, the government had to be sensitive to this, they said. They also hoped that in the new year, Pakistan would make a determined effort to dismantle terrorist infrastructure on its soil to help take the dialogue process forward.

"Not enough is being done by Pakistan" to stop cross-border terrorism, sources said, adding New Delhi's concern in this regard would be conveyed to Islamabad during the two-day foreign secretary-level talks starting on January 17.

On the Indo-US nuclear deal, New Delhi said it was ready to give assurances to its partners on safeguards but would not accept any conditions that could have any adverse impact on the country's strategic interests.

Complete coverage: Indo-US nuclear tango

Noting that the responsibility of generating a favourable opinion among the Nuclear Suppliers Group for India rested with the US, official sources said any safeguards agreement with the International Atomic Energy Agency would have to take into cognisance India's military programme.

They said India and the US were making progress on implementation of the July 18 nuclear deal and the two sides would make every effort to "conclude or substantially conclude" the process before the visit of President George Bush in early March.

Asked about Chinese influence in Nepal, sources said the interests of New Delhi and Beijing were "not confrontationist" and both wanted political stability and economic prosperity of the Himalayan kingdom. New Delhi also saw no departure in Beijing's policy of supplying ammunition to Kathmandu.

Sources said India had conveyed to King Gyanendra that interests of the monarchy itself would be undermined if initiatives were not taken for restoration of multi-party democracy. The king said he would take some initiatives with the Nepalese political parties.