New Andhra Pradesh Chief Minister Y S Rajasekhara Reddy gave a strong indication both to the state police department and the outlawed Peoples War group that his government was very serious on initiating dialogue with the warring extremists.

He also said that the Cabinet would be formed in a week's time.

Addressing a media conference in the evening, he disclosed that he had already given strict instructions to the police officials to ensure a congenial atmosphere for talks between the state government and the Naxalites.

Asked whether he would consider the proposal of lifting ban on the PWG group, Reddy said the new government would look into the matter when the ban period ends next month.

"We also have to consult the Government of India as PW has been declared a terrorist organisation under the central laws too," he explained.

The new government will hold a brief session of the newly constituted assembly in the third week of this month. "It would be just for five days," YSR said.

He said that the government was planning to hold a full budget session in June.

YSR said that the free power scheme for farmers would be continued as long as the Congress party would be in power in the state.

He declared that the scheme would be implemented across the state covering all the farmers irrespective of upland or delta areas or the size of the land holdings.

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