NEW DELHI (AFP) -- Pakistani President Pervez Musharraf has blamed India for slow progress in bilateral peace moves and suggested demilitarization of key areas in disputed Kashmir to speed up the process, reports said Sunday.

"There's not much of a response from the Indian side ... my disappointment is that months and years are passing and we are not moving ahead," Musharraf said in an interview with Indian television channel CNN-IBN.

"I propose, one way of moving forward ... take three towns of the valley -- Srinagar, Kupwara and Baramulla. Let all military move out of the cities to the outskirts. And we ensure there is no militancy inside," Musharraf said in the interview, excerpts of which were carried in Indian newspapers Sunday.

The Pakistani leader was referring to three key areas in Indian-controlled Kashmir, which has been in the throes of an Islamic insurgency since 1989.

In New Delhi, Indian Foreign Ministry spokesman Navtej Sarna quickly shot down Musharraf's proposal.

"Such decisions (demilitarization) are based on our assessment of the security situation prevailing in any particular part of the country," he told reporters.

"As long as the security situation in Kashmir and in other parts of the country is adversely affected by ... cross-border terrorism and violence perpetrated by Pakistan-based terrorist groups, the government of India will fulfill its responsibility to safeguard lives and security of its citizens," Sarna said.

India accuses Pakistan of supporting the Islamic rebellion in Kashmir, a charge Islamabad denies.

The rivals began a peace process two years ago which has so far produced a number of largely symbolic steps, including cross-border bus services and the resumption of sporting ties, but progress has been sluggish on central issues.

More than 44,000 people have been killed since 1989 in violence in the scenic Himalayan region, the trigger for two of the three wars between the rivals since 1947. Both claim Kashmir in its entirety but administer it in parts.