India on Monday offered Pakistan a three-month deadline to resolve differences over the 330 MW Kishenganga hydropower project, official sources said.

"We have offered a deadline ending July 15 which is subject to the review of the Indus Commissioners of both the countries," India's Commissioner for Permanent Indus Waters Commission D K Mehta said.

Mehta is leading a delegation of Indian water officials at the talks in Lahore [Images].

The official denied reports that India delayed time-bound settlement of both 450 MW Baglihar hydroproject and Kishenganga.

In order to allay the fears on Kishenganga, India has suggested a time bound solution and offered to address Pakistan's concerns, Mehta said while appealing to his Pakistan counterpart, Jamat Ali Shah to be more specific about Pakistan's objections.

He added, "Pakistan too should provide requisite data for us in time."

Pakistan Foreign Office Spokesman Jalil Abbas Jilani welcomed the offer. He said, "Pakistan wants resolution of this issue in accordance with parameters of Indus water treaty to avoid potential dangers to peace in the region."

"Pakistan reserves the right to seek World Bank's help, if mutual consent is not agreed upon by both the countries," Jilani told the media.

The announcement was made a day after New Delhi said it would consider practical modifications and changes to the design of the project, which was planned to be built by India over Jhelum River in Jammu and Kashmir [Images].

The main difference revolves around the distribution of water. Pakistan claims India cannot divert the waters of Kishenganga, which flows as a tributary of the Neelum river in Pakistan.

Pakistan maintains that since the project envisages 21 km long underground canal, it will amount to diversion of its waters.

However, Mehta said the canal was necessary to take the waters to the reservoir to generate hydropower. The project also envisages that the water is released back to Pakistan.

He added that under the treaty, India was entitled for storage of 0.14 million acre feet water. "We have limited storage rights and we are within the provisions of the treaty," Mehta said. 

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Indo-Pak officials to meet over Kishenganga hydro-power project