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Nepal has announced that it will release all terrorists detained under the Terrorist and Disruptive Activities (Control and Punishment) Ordinance (TADO) and cancel all pending cases to placate the terrorist elements with which it is negotiating peace. About 350 rebels have been in various jails and charged under TADO and an Appellate Court released 75 terrorists immediately and more releases are expected in the districts.

Home Minister Krishna Prasad Sitaula and terrorist leader Prachanda held discussions on Sunday about 200 km northwest of Katmandu and the Government said the talks were “fruitful.” Sitaula outlined the gist of the conversation as "The Government explained its road map to peace. We have taken it in a new spirit and will show maximum flexibility to reach the main goal (Constituent Assembly elections)."

A terrorist spokesperson also said that his group was ready to drop the divisive House dissolution demand. "We should not get tangled on the issue whether and when the House should be dissolved" although he claimed that day was not far. He also said that the next round of talks "in three days, or the latest by the end of this week." The next round is expected to cover issues of ceasefire monitoring and defining the need for an interim Constitution.

The United Nations (UN) said it is awaiting a formal invitation from the Nepal government to participate in and facilitate the country's fledgling peace process. Resident UN Coordinator Matthew Kahane asked the government to officially invite the world body for monitoring the ceasefire with the rebels and reiterated the UN's willingness to support Nepal's ongoing efforts to restore permanent peace. Nepal government revealed that it would seek UN's engagement in decommissioning arms of the Maoists besides monitoring the ceasefire. The UN wants conflicting parties to have a major role to play in the peace process and also minimize the participation of outsiders.