The union government and Naga insurgent group NSCN-IM continued talks for the second day on Wednesday when its demand for sovereignty for Nagaland and its territorial claims over portions of neighbouring states was categorically rejected.

NSCN-IM General Secretary Thuingaleng Muivah on Tuesday met Prime Minister Manmohan Singh and is understood to have conveyed the seriousness of his outfit to find a lasting solution to the Nagaland issue.

Ruling Democratic Alliance of Nagaland (DAN) today appealed to opposition Congress to participate in the proposed three-day 'Naga Consultative Meet' so that a consensus could be achieved on the vexed Naga political conflict.

Ahead of peace talks, main Naga rebel outfit NSCN-IM today asserted it has not withdrawn its key demand of sovereignty for Nagaland, a call rejected by the Centre as not feasible.

The NSCN (IM) general secretary T Muivah would arrive on Saturday night in New Delhi to carry forward the stalled Naga peace process, Union Home Secretary G K Pillai said.