Prime Minister Manmohan Singh [Images] on Saturday said talks are on with Pakistan for opening  a road between Kargil and Skardu in Pakistan-controlled northern areas.

Laying foundation stone for a 44 MW power project in Kargil, the prime minister said converting the Srinagar-Leh road into a national highway is also under consideration.

The prime minister announced a grant of Rs 10 crore to the Kargil Autonomous Hill Development Council.

Recalling the 1999 Pakistani aggression of Kargil, Singh said it had caused a lot of problems for the people of the region.

"Our effort is to ensure that such dangers do not recur. That is why we have started talks with the Pakistan government to ensure permanent end to mutual conflicts so that people of two countries could live peacefully," he said.

"In this regard an important decision has been taken on opening of the Srinagar-Muzaffarabad bus service after 55 years," the prime minister said.