There was an eight point understanding between the government and the Maoist rebels.
The insurgency ended in 2006 after the Maoist rebels agreed to enter a peace process with the government.
According to independent media reports, as many as 500 people were killed in the conflict this year, half of these Maoist rebels.
Civilians were most affected in the ongoing fighting between Maoist rebels and government security forces.
It is currently frequently involved in clashes with Maoist rebels.
The cabinet also announces that the Maoist rebels will no longer be considered a terrorist group.
India has offered the government military equipment and training in the fight against Maoist rebels.
In 2009, he said the country was "losing the battle against Maoist rebels".
The Maoist rebels, who are expected to sign a peace agreement this week, have been taken to task recently as well.
The mountain town was the scene of a conflict between government forces and Maoist rebels.