The pullback by around 750 PLA troops began after the issue was resolved at the third flag meeting between the two sides, Army sources said here.
After a meeting with her Chinese counterpart Wang Yi in New York, External Affairs Minister Sushma Swaraj announced that the two countries have resolved the stand-off at the Ladakh border and withdrawal of troops will begin today and be completed by September 30.
Swaraj said that the two sides have also decided on a timeline for the withdrawal of troops.
This exercise appeared to be a re-run of last year's Depsang Plains stand-off where the Chinese had demanded the dismantling of Indian positions in Chumar in return for withdrawing its troops from the Indian territory and succeeded in getting their demands accepted before leaving.
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The two sides have agreed to restore the pre-September 10 position in the area and the Chinese side will withdraw its troops from Indian areas by September 30, sources said.
Tension in the area erupted over two weeks ago when some Chinese workers, who were constructing a road on their side, crossed into the Indian side and claimed that they had orders to build a road up to Tible, 5-km deep inside Indian territory.