NEW DELHI, Feb 24: In a balancing act to placate a left-right domestic divide, India on Sunday announced a second round of military exercises with China and prepared to host an important visit on Tuesday by US Defence Secretary Robert Gates.

“For the first time we had an exercise with China in their territory. Next joint exercise will be held in India this year. You can wait for it,” Defence Minister A. K. Antony told reporters in Laungwala on Sunday.

He played down reports of Chinese incursions in Arunachal Pradesh, saying “there exists an established channel to sort out such matters.”Mr Antony said the India-China border was not demarcated yet.

“It is not settled yet. There is always some scope for confusion,” he said.

Antony was quoted as speaking to journalists after a visit to Laungwala, the historic site where about 100 Indian soldiers thwarted a reported attack by Pakistani troops during 1971 India-Pakistan war.

New Delhi and Beijing carried out their first-ever joint military exercise in China’s southwestern province of Yunnan in December last year which was helpful in building mutual trust and promoting cooperation between the armies of the two countries.

Reports said meanwhile that a controversial Logistics Support Agreement (LSA) and expansion of US military sales to India are expected to figure prominently during the two-day visit by Mr Gates from Tuesday.

During the security dialogue, the two sides will review their strategic cooperation in various fields and explore ways to enhance the ties, Zeenews said quoting sources.

To be accompanied by a 50-member military-cum-business delegation, Mr Gates is also likely to call on Prime Minister Manmohan Singh and meet Foreign Minister Pranab Mukherjee and National Security Adviser M. K. Narayanan.