The seven-member Indian delegation, headed by L R Thapar, Additional Member of Traffic Railways Board of India, also included representative of Rajasthan government, Deputy High Commissioner in Pakistan, representative from foreign office, Customs and two engineers.
Zaeem Ahmed Chaudhry, Secretary Railway Board headed Pakistani delegation with Director Operations, Nasir Zaidi, Additional General Manager Railway, Mushtaq Ahmed and one representative each from Sindh government, Foreign Office, Interior Ministry and the Customs assisting him.
Sources told Business Recorder that India proposed to start rail service from October 2, 2005 whereas Pakistan was of the view that it has to rebuild the railway track from meter gauge to broad gauge at a cost of Rs 2.5 billion.
The distance between Mirpurkhas to Munabao on this route is 128 km out of which a patch of up to 10 kilometers from Mirpurkhas to Zeropoint, the border between two countries, has no rail track while remaining part of the track is in dilapidated condition based on the old narrow gauge system.
Insiders said that nearly Rs 280 million are required for laying down 10 kilometer railway track from Khokhrapar to Zeropoint, while other handsome amount of money is required to upgrade and rehabilitate the already existing railway track from Mirpurkhas to Khokhrapar and for the facilitation of Pakistan Railways, sources added.
At the moment, train only travels between Khokhrapar to Mirpurkhas once a week at a very low speed of 20 to 25km/h.
On the other hand, India is in a better position, as it will have to work on only 2.3km long railway track from Munabao to Zeropoint.
The meeting would continue on Friday and it is expected that both sides would come out with a joint declaration.
Meanwhile, sources further said that Prime Minister Shaukat Aziz has called a meeting of Railway authorities on December 6 to discuss the whole project.
AFP adds: Pakistan Railway Board Secretary Zaeem Chaudhry said a "breakthrough" in talks with the Indian delegation was likely.
"We expect that both sides will agree to better results for the betterment of the two nations and for the two peoples and the countries," Chaudhry told reporters just before the beginning of the meeting.
The second rail link would have no commercial value, but was primarily aimed at reuniting divided families in Pakistan and India and improving relations between the nuclear-armed neighbours, Chaudhry said.
"There is no financial return on this but it is just a good gesture... a sort of a gift from one country to another to bring the divided families together."
The train service along the 10-km route between Khokhrapar and Munabao was suspended in September 1965 when the two countries went to war over Kashmir.
The talks are part of a step-by-step peace process began in January, with officials and politicians discussing various major sticking points.