"It is definitely a matter of concern. But we are taking our counter measures and we are doing our own preparation," Minister of State for Defence M M Pallam Raju told reporters here.

He was responding to a question on the Chinese plans to build the rail link to Pakistan and reach the Arabian Sea via Gilgit-Baltistan region in Pak-occupied Kashmir.

Raju said both China and Pakistan had made it "very apparent" that they were "working closely together and cooperating closely" on defence and strategic issues.

China has already built a rail line up to the Indian borders along the Tibetan plateau and now the plan is to have the rail link to Pakistan and reach the Arabian Sea.

Media reports had suggested that a Memorandum of Understanding for the rail link will be signed between Beijing and Islamabad soon.