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HYDERABAD, India, Friday (AFP) Maoists in the southern Indian state of Andhra Pradesh have agreed to extend a ceasefire with the police for another month to push forward talks aimed at ending a violent three-decade struggle, rebel sources said Thursday.

Rebels of the People's War Group (PWG) Thursday held talks with the government in Hyderabad, the capital of Andhra Pradesh, the third round since the rebels declared a month-long truce in May.

Sources said the movement's underground leaders wanted to attend the next round with the government.

The PWG is demanding that the state government lift a ban on the group to enable their top leaders to attend the talks.

They want independent observers to be appointed to monitor the implementation of the ceasefire, which they claim the government is not responding to, the sources said.

The rebels say the state government should call off police action against them to create an atmosphere conducive for talks.

The state government says it responded to the truce by easing a crackdown against the rebels, although it initially feared the PWG was using the opportunity to regroup.

PWG has been waging an armed struggle for land reforms and social justice in the tribal and underdeveloped regions in Andhra Pradesh for more than three decades.

The Maoist insurgency has already claimed 10,000 lives and there is pressure on both the rebels and the state government to find a peaceful end to the problem. 

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