"The information we have is that hopefully the crisis would be resolved," Singh told the father and relatives of hostage Antaryami, who goes by only one name.

"We are working behind the scenes and we are hopeful that the crisis would be resolved peacefully," he said.

The militants have been demanding the Kuwait-based transport firm for which the men worked wind up its operations in Iraq or they would behead the men one by one.

"The government is in constant touch with its missions in Iraq, Kuwaiti and Cairo and it seems that this issue would be resolved and you and your family's tension would be over," Singh told Antaryami's family in New Delhi.

"It is a very unfortunate incident. They (the hostages) are not combatants. They had gone there for jobs. We will do whatever to get them released as early as possible."

The foreign minister was speaking after attending a meeting of the government's highest strategic decision making body called by Indian Prime Minister Manmohan Singh.

The Cabinet Committee on Security, which met at the prime minister's residence in New Delhi, also groups the defence, finance and home ministers, national security adviser and chiefs of the armed forces.

Meanwhile, in Antaryami and Raj's northern home state of Himachal Pradesh, their relatives complained they were not being kept informed by the government.

"We are not being provided any information by the authorities. We only learn about developments from the media," said Ram Dass, uncle of Antaryami at his village in Una district.

Angry villagers also staged a protest on Saturday and blocked traffic on a busy highway.