India's Defence Minister AK Antony confirmed that China's encroachment in the Indian border of 640 sq km area is under Free Land Intrusion Scheme (FLIS) specially designed for the neighboring countries aimed to improve relations with them. He was addressing the media before his speech in Lok Sabha.

"FLIS is specially designed for neighbor countries to improve the relations with them. This was a landmark scheme introduced by UPA Government which will solve all border disputes. Under this scheme we offer our border land to neighbor countries. Currently, only China and Bangladesh are eligible for the scheme," said AK Antony.

He said that currently the government is in demo mode of the scheme and therefore it was not willing to disclose it in the public. AK Antony was talking about the recent media reports referring to National Security Advisory Board's observation that China has captured 640 sq km of Indian territory in Daulat Beg Oldie and other sectors in Ladakh. The neighbor country is not allowing patrolling to Indian army in the occupied area.

"As the scheme is under demonstration stage we maintained very high confidentiality and never discussed with Indian Army therefore all this confusion is. But we are very sure that the cross border terrorism is now a matter of time with introduction FLIS," said AK Antony.

Talking about the benefits of FLIS, AK Antony said "Border disputes are very sensitive issue and the media always sensationalize it and therefore we decided to launch an innovative scheme. Under this scheme, all our neighbor countries are welcome to capture the land in India for free of charge but with a condition that they will have to maintain good relations with us. Now if China wants New Delhi, they can come and take over it we have no issues. Only thing is that the country has to maintain peaceful and good relations with India."

The minister said currently China and Bangladesh are getting these special benefits while Pakistan and other countries are out of its ambit.

"Pakistan has requested for these benefits and asked us to give Kashmir to them. But they are still non committal about giving us most favored nation (MFN) status and improving ties," said AK Antony.

Answering questions of reporters whether neighbor countries are eligible for the benefits of land acquisition bill, AK Antony said "Yes they are eligible. If any industrialist wants to set up factory on the land encroached by our beloved neighbor it will have to pay 4 times the market value of the land."