Kolkata, Aug 25 - India has decided to construct a trans-Arunachal highway in its effort to enhance infrastructure in the strategic state bordering China, Minister of State for Defence M.M.Pallam Raju said Tuesday.

'We will construct a trans-Arunachal Pradesh highway as part of our bid to build infrastructure there,' Raju said on the sidelines of a programme at the Garden Reach Ship Builders and Engineers (GRSE) here.

Replying to queries from media persons on China building infrastructure in Tibet close to its border with India, Raju said: 'The highway will be constructed up to a satisfactory level'.

The minister said India now has 'very good relations' with China, there being no incident of cross-border firing of late.

'But incidents of troops crossing the border take place at times. And this problem will be there till the McMahon Line dispute is resolved,' he said.

The minister said talks between the two countries on the infiltration issue were on.

He said the speed of setting barbed wire fencing along the Indo-China border would be speeded-up.