India has shot down a proposal by China that troops of both sides could slightly back off from their existing eyeball-to-eyeball position in Ladakh even as Defence Minister AK Antony made it clear that the country would take every possible step to safeguard its interests.

Chinese troops have to go back to positions held before the April 15 intrusion to defuse the current border crisis, the Indian side said during a flag meeting with China today.

The third flag meeting, held between Brigadier-level officials at the 'Spanggur-Gap' in eastern Ladakh, lasted for nearly four hours. China, sources said, offered a phased response and it looked that as if it was testing India's military resolve.