During the talks, PWG merged with Maoist Communist Centre (MCC) to form CPI-Maoist.

The ban on CPI-Maoist and its frontal organisations was re-imposed Aug 17, 2005, following the killing of then Congress legislator C. Narsi Reddy and nine others by Maoists in Mahbubnagar district on Independence Day. The killings followed the failure of peace talks and collapse of nine-month long ceasefire.

CPI-Maoist, the most powerful of Maoists groups in the country, has considerably weakened in Andhra Pradesh during the last four years as it lost over 400 cadres, including top leaders, in anti-Maoist operations by police and the elite anti-Maoist force Greyhounds.

The central government banned CPI-Maoist in June by branding it a terrorist organisation.