New Delhi  - Special representatives of India and China began two days of talks in the Indian capital Friday to negotiate a framework for final settlement of a decades-old border dispute.

The Indian delegation at the talks is headed by National Security Advisor MK Narayanan and the Chinese side by State Councillor Dai Bingguo.

India and China fought a war in 1962 but are now rapidly expanding economic ties.

The contentious border dispute involves two areas - 90,000 square kilometres largely in India's north-eastern state of Arunachal Pradesh, which China claims is illegally occupied by India, and 43,180 square kilometres of territory along the northern Jammu and Kashmir state which India maintains is forcibly occupied by China.

The current talks are the 13th round to be held since India and China initiated the border dialogue process in 2003.

The two sides are trying to expeditiously resolve the complex issue and are hoping for progress, IANS news agency quoted Indian diplomatic sources as saying on the eve of the talks.

The dialogue would also cover regional and issues of mutual interest, the sources said.

The Indian delegation includes the newly-appointed Foreign Secretary Nirupama Rao who was earlier ambassador to Beijing and officials from the External Affairs Ministry and the Prime Minister's Office.

The Chinese side includes Vice Foreign Minister Wu Dawei and officials of the department of boundary and ocean affairs.

The latest round of talks comes against the backdrop of China's renewed assertions on Arunachal Pradesh.

China tried to block a development loan for India by the Manila-based Asian Development Bank in March on the grounds that part of the loan was meant for Arunachal Pradesh.

Over recent months, China has also protested against visits to Arunachal Pradesh by Indian leaders including President Pratibha Patil and Prime Minister Manmohan Singh.

The two countries signed an agreement in 1993 to maintain peace and tranquility along a line of control along the India-China border area.

The last round of border talks was held in Beijing in September 2008. (dpa)