Talks resumed on Monday between the Odisha government and Maoist-appointed mediators for the release of the second Italian even as another rebel group holding captive a ruling BJD MLA demanded immediate halt to combing operation and release of jailed ultras.

"Fresh talks for safe release of Italian tour operator Paolo Bosusco progressed in a cordial atmosphere. We hope to conclude negotiations soon," Home Secretary U N Behera told reporters during a break in the dialogue session.

The talks were suspended on March 24 when tribal BJD MLA from Laxmipur, Jhina Hikakawhen, was abducted by over 50 Maoists while he was returning home from Koraput district.

Maoist-nominated negotiators B D Sharma and Dandapani Mohanty also maintained that discussions were continuing in a cordial atmosphere and would be concluded soon.

"Now, we have reached a decisive stage," Mohanty said.

The Home Secretary made it clear that the talks with two rebel mediators were confined to safe release of Bosusco, whose compatriot, Italian tourist Claudio Colangelo, was set free yesterday and handed over to a group of journalists in tribal-dominated Kandhamal district.

As MLA Hikaka was abducted by a separate rebel outfit on March 24 in Koraput district, the matter relating to his release was not being discussed with mediators Sharma and Mohanty, sources said adding the abductors of Hikaka were yet to name their negotiators.

However, Mohanty said there was information that the abducted legislator was "safe and secure".

Sharma also made it clear that rivalry between Maoist groups had not affected the negotiation for the release of the lone Italian hostage.

A letter, addressed to Chief Minister Naveen Patnaik and bearing name of Hikaka, was released to a section of the media which demanded immediate halt to combing operation by security forces, release of political prisoners including ultras and activists of Chasi Mulia Adivasi Sangha.

Claiming that the BJD MLA was safe, the letter also demanded fulfilment of all the conditions conceded by Odisha government during the abduction of the then Malkangiri district collector R Vineel Krishna in February last year.

It also sought a halt to holding of rallies and processions for release of the lawmaker, sources said.

The chief minister has appealed to the Maoists to release Hikaka unharmed immediately.

The state Assembly was paralysed amid frequent adjournments as Opposition Congress members stormed the well demanding the chief minister's resignation.

The Congress alleged that ruling BJD had entered into a secret agreement with a Maoist-backed outfit for zilla parishad chairman's election in Koraput. .