The crucial talks between Nepal government and Maoists aimed at pursuing the rebels to lay down arms and bringing them to mainstream failed to produce any 'concrete results' on Sunday but the two sides agreed to continue the parleys on Tuesday.

'The draft of the interim constitution was presented before the top leaders of the seven parties and the Maoists at Sunday's meeting', said a joint release issued after an eight- hour meeting attended by Premier G P Koirala, Maoist chief Prachanda and senior leaders of the seven-party alliance.

'Issues like interim constitution, election to the constituent assembly, implementation of past agreements, arms management, relief to conflict-victims, socio-economic transformation and restructuring of the state were discussed in a cordial atmosphere', said the release signed Krishna Prasad Sitaula and Krishna Bahadur Mahara, talks coordinators for the government and the rebels respectively.

"Extensive discussions were held on arms management, finalising the interim constitution and announcing the date for constituent assembly elections," said Rajendra Mahato, general secretary of Nepal Sadbhavana Party after the talks.

"However, the meeting failed to produce any concrete results as expected by many and it was decided that more time was needed for further discussions on other crucial issues," he said. "It has been decided to continue the meeting at 8 am on Tuesday."

'The discussions were held in a very positive manner', said the joint press release.

Communist Party of Nepal (UML) general secretary Madhav Kumar Nepal said, "There has been wide understanding to complete the elections to Constituent Assembly by May next year."

The meeting also agreed to appoint commissioners at the Election Commission at the earliest for the purpose, he told reporters after the talks.

The much-awaited parleys, which resumed after a four-month gap, were held at the prime minister's residence at Baluwatar amidst tight security with the venue being surrounded by security forces as well as Maoist cadres.

The first round of talks between the SPA and the Maoists aimed at ending the decade-long insurgency was held on June 16 after King Gyanendra was forced to end 14 months of absolute rule in April following mass public protests led by an alliance of SPA and Maoists against the monarch.

A large number of pro-democracy activists, those injured in the April protests, youths and students were gathered near the venue 'to exert pressure' on their leaders.

Koirala had stressed on Saturday on the need to keep patience during the talks saying 'all issues cannot be resolved in a single sitting'.

The media contingent was asked to wait about 100 meters away from the meeting venue.

Nepal Congress (Democratic) President Sher Bahadur Deuba, Deputy Prime Minister and People's Front Nepal chairman Amik Serchan, Nepal Sadbhavana Party acting president Bharat Bimal Yadav, Nepal Workers and Peasants Party chairman Narayanman Bijukchhe and United Left Front leader and minister Prabhunarayan Chaudhari took part in the talks.