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Srinivasalu got bail along with 11 others from a fast track court in Malkangiri. The Maoists had demanded release of Sriramlu, Ganti Prasadam, Padma and several others for freeing district collector R V Krishna, a 2005 batch Indian Administrative Service officer, and junior engineer Pabitra Majhi. They were abducted on Wednesday last.
The mediators -- Prof R S Rao, Prof Hargopal and Dandapani Mohanty -- on consulted Maoist leader Ganti Prasadam, who was shifted to the special jail in Bhubaneswar from Koraput. "It is the common responsibility before us to defuse the situation," Prasadam said after reaching Bhubaneswar from Koraput.
After the third day of talks, Orissa Home Secretary UN Behera said, "We are nearing close to resolving the issue with the mediators selected by the Maoists. They mediators are in touch with Prasadam."
Asked whether the state government would oppose the bail of certain other Maoists leaders, Behera did not give a direct reply and said, "We have progressed well in the matter."
The Orissa government was represented by Behera and Panchayati Raj Secretary S N Tripathy. The three mediators went to Jharpada jail for discussions with Prasadam.
Contentious Naxal demands like release of Maoists and 700 tribals, withdrawal of the Border Security Force and Central Reserve Police Force from Malkangiri and Koraput were discussed at length as Krishna, 31, and junior engineer Pabitra Majhi spent yet another day in captivity.
The participation of Prasadam in the negotiations was one of the major demands of the Maoists who had abducted the two officials on February 16 from Chitrakonda area of Malkangiri district.
While eight of the 14 demands of Maoists were settled between mediators and state government officials on Monday, discussion on the remaining six would hold the key to resolution of the crisis, sources said.
Prasadam has moved a bail petition before the Orissa high court along with four other Naxals. The state government has decided not to oppose Prasadam's bail, they said.
The settled issues included recognising Konda Reddy and Nokadora communities as Scheduled Tribe, steps for scrapping Pollavaram multi-purpose dam project in Andhra Pradesh and issue of land pattas to tribals whose land had allegedly been taken away in Malkangiri and Koraput, Behera said.
An agreement has also been reached on extension of a canal project in Malkangiri and compensation to families of two persons who died in jail custody due to alleged torture in Koraput.
The state government would also take steps to facilitate release of two central committee members of Communist Party of India-Maoist Sila Di and Padma lodged in Jharkhand and Chhattisgarh jails, he said.
The issue of stoppage of bauxite mining in Mali and Deomali hills in Koraput and Rayagada districts was also resolved, he said.
With people remaining anxious about the fate of the hostages, Orissa Chief Minister Naveen Patnaik told the assembly, "We have been assured by the mediators that there shall be no harm to Krishna and Majhi." Both are safe and in good health, he said.