The PWG says it is active in 14 Indian states

The ban, imposed in 1992, is not being renewed ahead of planned peace talks after 30 years of conflict which have claimed an estimated 6,000 lives.

The move was announced after the two sides met on Wednesday.

A spokesman for the PWG, which wants a communist state, described the government's move as bold.

He said the ban had affected not just the group, but the people of the state as well.

Mediation

Andhra Pradesh Home Minister K Jana Reddy, said the decision not to renew the ban was made after appeals made by various sections of the population.

"We hope this will create the right atmosphere to carry forward the process of dialogue to find a permanent solution," the Press Trust of India quoted him as saying.

PWG IN ANDHRA PRADESH In 1980, PWG launched by teacher Kondapally Seetharamaih Police started action against the PWG in the mid-1980s Muppal Lakshman Rao, alias Ganpathy, ousts leadership in 1991 to bring more extremist agenda Failed assassination attempt on then chief minister Chandrababu Naidu in 2003 Agrees ceasefire on 16 June, 2004

He also cautioned the group against moving about with arms.

However, PWG policymakers told the BBC that they have a right to keep arms for their self defence.

No date for formal talks has been set but preliminary discussions have been held.

It is hoped they will lead to direct negotiations between the state's chief minister and rebel leaders after the authorities offered a ceasefire in mid-June.

Several prominent civil liberties activists and veteran journalists are helping to mediate between the two sides.

If the talks do go ahead, it will be the second time both sides have come together.

The last negotiations in 2002 broke down after three rounds.