India has not called off the talks and will await a response from Pakistan on this issue.
India is very clear that when Pakistan's NSA, Sartaj Aziz visits India he shall not hold talks with the separatists.
However, Paksitan has indicated that India cannot dictate terms and the talks with the separatists will be held.
Currently both nations are involved in a tug of war on whether to call off the talks or not. Pakistan would wait for India to take the decision.
However, India has indicated that it is still in favour of the talks, provided Pakistan abides by the condition of not meeting with the separatists.
India has said that Kashmir cannot be an issue during the talks and it was decided that they would only speak on terror.
Pakistan on the other hand has said that if India and Pakistan talk, then Kashmir will figure in it automatically.
Pakistan on the other hand has been saying that if the talks are off then India must formally confirm this to them.
Pakistan says that they have no indication about the talks being called off as was reported in certain sections of the media earlier.
Sources in Delhi, however, inform that the talks are very much on and hence there is nothing to convey to Pakistan formally. Sources say that there is a likelihood of the talks being called off.
However, even if the talks are called off, Sartaj Aziz, NSA of Pakistan would visit India on a diplomatic visa and hold talks with the separatists only to send across a message to India.
Officials in India however say that if Pakistan has that in mind, the same would not be allowed.