He underlined that a government in the sensitive state should be based on three issues -- sovereignty, good governance for developmental activities and regional balance -- and hoped that "parties involved" would put their "heads together" for the larger interest of the state.
As the stalemate over government formation continued for the 13th day in a state where Assembly polls threw up a hung verdict, the Finance Minister said the task is a "much larger battle" between democratic parties and the Indian state versus separatists supported from across the border.
Jaitley did not disclose details about the talks being held between BJP and PDP, saying he was not aware.
Asked whether BJP would be able to give up its stand on Article 370 and revoking of controversial Armed Forces Special Powers Act as demanded by the PDP, he said, "It is very difficult for political parties to give up their ideological positions. Can I expect PDP or NC to give up there ideological positions? Similarly, if they ask BJP to give up its ideological position, the answer is no."
"I hope that the parties involved in the process will put their heads together and in the larger interest that Kashmir needs a government, we work in that direction," he added.
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