The first round of talks between the Andhra Pradesh government and naxalites ended inconclusively on Monday. However, both the parties agreed to carry forward the peace process in spite of the hitches.

The talks concluded without any progress on the contentious Clause 7 (of the ceasefire agreement) prohibiting naxalites from carrying weapons during the peace talks.

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Communist Party of India-Maoist leader Ramakrishna said: "Though we are disappointed with the government response to our demands, the very fact that the talks helped create a peaceful atmosphere and minimise violence is a big achievement."

Home minister K Jana Reddy, who led the government team, described the first round of talks as fruitful and said that several issues could not be taken up due to lack of time.

The home minister indicated that the second round of talks could be held two months later. However, the naxalites said they preferred to resume talks on November 17, a day after the meeting in Hyderabad to mark the merger of People's War and Maoist Communist Centre of India.

The ceasefire will continue till the second round of talks, the leaders said. The naxalite leaders will return to the forest on Wednesday.

The naxalites managed to extract several concessions from the government. The government agreed to set up a high-power body to identify land for distribution to the poor; take up land inventory through a detailed survey; constitute a land bank to curb the land sharks in urban areas and draw up a time-bound plan to implement Regulation 1/70 (for protection of the interests of tribals).

The government also agreed to consider a demand to lift cases against political activists and release political prisoners except those convicted in extremely sensitive cases.

Expressing disappointment over the outcome of first round of peace talks, Ramakrishna said that the government's responses to various demands put forth by them were vague. The government appeared indecisive, he said, adding that this was not the end of the road. "Our ultimate course of action will depend on how the government finally reacts to the issues within a reasonable time frame," he added.

Jana Reddy, on the other hand, said that the government had only sought time to formulate a clear approach to the issues raised by the naxalites. He said the government would set up a high-powered committee to identify surplus, government, poramboke (vacant) and occupied lands for distribution to the poor.