The newly formed cabinet of ministers under Prime Minister Girija Prasad Koirala has removed the \'red corner\' tag, announced an indefinite ceasefire beginning today (Wednesday) and invited the Maoists for peace talks. The announcements came after a two and half hour meeting held in Singha Darbar today.

Other major decisions such as de-structuring the Unified Command system, financial compensations of Rs 1 million each to be given to the families of the martyrs killed during the Peoples Movement and special attention for the seriously injured were also taken today. The new government cancelled the appointment of regional and zonal administrators appointed by the royal government and dissolved the local municipalities set up after the municipal polls in February 2006.

The government\'s announcement for truce comes after the Maoists\' call for a ceasefire on 26 April to \'encourage the seven parties to head for a constituent assembly\'. The Maoists reaction to the latest government offer has not come through yet.