With power sharing talks between the PDP and BJP seemingly at an impasse, the big question on everyone's minds is whether Jammu and Kashmir, which held state assembly elections in December will actually get a government.

With power sharing talks between the PDP and BJP seemingly at an impasse, the big question on everyone's minds is whether Jammu and Kashmir, which held state assembly elections in December will actually get a government.

PDP spokesperson Naeem Akhtar told reporters, "We (PDP) have more issues of convergence... and a few issues, one or two are there, on which consensus has not emerged as yet. Attempts are being made by both the sides to reach consensus on them."

"Both the parties are trying to resolve the areas of divergence and difference as we feel that the government which is formed should be purposeful government. As soon as we feel that we have overcome major differences, we will take a decision", he added.

PDP President Mehbooba Mufti, who has been in the national capital since last weekend, on Wednesday met Finance Minister Arun Jaitley. The meeting took place at Jaitley's residence.

The sticking points are reportedly AFSPA, which the PDP wants removed, and Article 370 which the BJP has been strongly against. In comments to the media on Wednesday, the PDP said that talks were on to achieve a "consensus" on "left out one or two issues" but refused to commit to a time frame in which these could be resolved.

The PDP had released an 11-point demand list, which includes points such as negotiation with the Hurriyat and "citizenship rights for displaced Hindus from Pakistan, settled in Jammu since 1947," which could make any tie-up between the BJP and PDP in J&K an uneasy one, Times of India reported.

It also demanded status quo on Article 370 and the removal of AFSPA.

Complicating the mix further, are reports suggesting that the RSS had opposed any dilution in the BJP’s stand on the Article 370 that accords special status to J&K and AFSPA. Former RSS ideologue, KN Govindacharya, also slammed the talks, calling them 'absolutely immoral'.

"Such alliances are short term gain, long term loss. It is totally unprincipled. Specially a party like BJP, which claims of ideology should desist from this", he was reported as saying by PTI.

Meanwhile the army has also chimed in, saying that they would be against any move to 'revoke', 'partially withdraw' or 'dilute' AFSPA, reported Economic Times.

According to the report: "Brushing aside any need for a 'political gesture or initiative'" on the matter, the Army says any dilution in AFSPA safeguards would be "premature" at this stage since Pakistan still has 44 terror-training camps directed against India on its soil, with at least 17-18 of them still operating round-the-clock. "Yes, violence levels in J&K are certainly down, with the state polls being held without any major incident. But the government should adopt a wait-and-watch policy to ensure there is no major terror blowback," said an official.

Interestingly, it was the army's strong objection to the removal of AFSPA that also prevented UPA Home Minister P Chidambaram from making amendments to the act after demands from the J&K government.

The massive defeat of the BJP in the Delhi Assembly elections has also led the central party leadership to address the concerns of the state unit leaders, according to PTI.

State unit BJP leaders have opposed any surrender by the party on Article 370, AFSPA and rehabilitation of West Pakistan Refugees fearing the base of the party will be eroded in Jammu region. The region has given the party 25 out of the 37 MLAs from for the Saffron party.

The PDP meanwhile has not given up hope just yet.

PDP spokesperson Naeem Akhtar told reporters, "Mufti Sahib (PDP chief Mufti Mohammad Sayeed) has said we need to form an alliance with BJP and that should be an opportunity, a historic opportunity to get Kashmir out of this imbroglio. It is an opportunity for the country, J-K and the entire region how can we bring this state out of the state of unrest. We should convert this mandate into an opportunity".

In fact, this analysis report by the Indian Express suggests that it has been the PDP, rather than the BJP which has been climbing down from its demands, despite the public release of its 11 point list. It notes that in matters such as Article 370 for instance, the PDP has revised its demand from "self-rule, demilitarisation, joint mechanisms between the two Kashmirs, a porous LoC for people on either side" to only ask the BJP to agree to status quo on Article 370. Even in terms of Pakistani refugees in the valley, the PDP has said it favours these refugees getting such rights on “humanitarian grounds".

Of course, there is the possibility that the deal may just fall through and the state will remain under Governor's rule. In which case, the Express report says, it may just be advantage PDP.

In the meantime, the biggest loser of this situation remain the people of the state, who turned out in record numbers to vote in a new administration. With no government, and an unfunded gap of over Rs 5,000 crore in overall resources all new developmental projects in the state have already been stopped.

But with so many external factors also influencing the decision, what the outcome will be, is anyone's guess.