NEW DELHI, Aug 8: Families of three Indian truck drivers kidnapped in Iraq waited anxiously on Sunday as the kidnappers reportedly made new demands for the release of their seven hostages, dimming reports of a breakthrough in the three-week ordeal.

India's junior foreign minister Edappakath Ahamed said on Saturday that "all indications" pointed to an early release of the Indians, three Kenyans and an Egyptian who were kidnapped on July 21.

But the seven truck drivers' Kuwait-based employer said on Sunday that it had learned of a fresh demand from the abductors, who had originally ordered the company to pull out of Iraq.

"Till yesterday we were very close" to securing the release, Rana Abu Zaineh, spokeswoman for the Kuwait Gulf Link Company, told an Indian television news channel. "But late night there was a new demand," she said.

"Nothing (is) sure till this minute; we are still discussing it," she said and added that the company was talking with negotiator Sheikh Hisham Al Dulaimi, an Iraqi tribal leader.

An Indian foreign ministry official said the government was "checking" the report of the new demands. Relatives of the drivers said they would remain cautious as a report last week by the Kenyan government of the hostages' release had proved false.

"This has dampened our hopes," Ram Murthi, the father of hostage Antaryami, said about the new demand. "Until I hear my son's voice telling me that he is free, I will not feel at ease," he told AFP from Dehlan village in Himachal Pradesh.

Ram Dass, the hostage's grand-uncle, said: "It's been a long wait for us. So until he comes back home, we are on tenterhooks. All three of our boys should come back. Then we will celebrate with all the villagers," he said.

The drivers were seized by a previously unknown group, the Islamic Secret Army-Holders of the Black Banners. The militants also demanded compensation for the families of those killed by United States and coalition troops in Fallujah.

Indian newspaper The Hindu, quoting officials, said on Sunday that the kidnappers had also demanded $5 million in ransom, which was scaled down to $3 million and then to $350,000. -AFP