Security forces from the army and police are exercising “restraint” in a search and rescue operation to rescue 71 abducted policemen and recover looted arms and ammunition from Maoists in Rolpa district in the third day of operations against rebels Sunday, the Home Ministry said.

This is the first mention of negotiations to free the hostages and the surrender of looted arms after three days of operations which continued Sunday. Forces are encountering difficulty in forcing the insurgents to free the captured hostages in the operations marred by heavy rain in the hilly district 650 kms northwest of the capital, an announcement said.

The encirclement of the rebels continued the third day. The rebels are holding policemen and villagers hostages as human shields at a village, reports said. There were no casualties in the operation Sunday, the Home Ministry announcement said.

Amid conflicting reports, the Home Ministry announcement said there have been no casualties in the entire operation launched Thursday. Other reports have said several dozen Maoists have died in a hot pursuit to free policemen and recover looted arms and ammunition in the first military operation against Maoists in more than five years in which more than 1,700 persons have been killed.

Officials confirmed three military casualties when Maoists fired on an army helicopter Friday triggering the retaliation. Two army helicopters have been damaged in the rebel attacks, a security source said.

A human rights group is scheduled to drive to the operation area Monday from the capital as authorities turned back a group of journalists from neighbouring Dang district Sunday.