The Union Home Ministry has held discussions with representatives of Gujarat and Dadra and Nagar Haveli and Daman and Diu on the transfer of a piece of land and four villages to the Union Territory from the state but no decision has been taken yet, officials said.

According to the proposal, four villages of South Gujarat's Valsad district, Meghval, Nagar, Raymal and Madhuban and a part of Ghoghala village of Saurashtra will be merged with the Union Territory.

While the four villages are more accessible from Diu, the piece of land in Saurashtra is to be given in lieu of land given to Gujarat in 1989.

The discussions were held with the representatives of the Gujarat government and the administration of the Union Territory of Dadra and Nagar Haveli and Daman and Diu recently but no decision could be arrived at, an official privy to the development said.

While Nagar, Raymal and Madhuban villages are located between the Madhuban dam reservoir and the Union Territory, Meghval village is surrounded by the Union Territory.

No decision could be taken as the Gujarat government is yet to give its full consent to the proposal of the complete merger of Nagar, Raymal and Madhuban with the Union Territory even though it has given its in-principle nod to the handing over of Meghval village.

The Union Territory has been asking for handing over the piece of land in Ghoghala along the Saurashtra coast in return for land given by Diu to Gujarat in 1989 for developing a fishing port.

The administrator of the Union Territory had also sent a letter to the Gujarat Chief Minister requesting it to give the piece of land in Ghoghala to the Union Territory.

If the land and the four villages are handed over to the Union Territory, tourism is expected to get a boost since liquor will be available there after coming under the Union Territory's jurisdiction as Gujarat is a dry state, the official said.