The Centre and the Assam government signed a tripartite pact with the United Liberation Front of Asom (Ulfa) on Saturday to end all operations against the militant outfit.
The agreement is being seen as a step towards ending violence the northeastern state has been going through since 1979 when the Ulfa was founded to fight for a sovereign nation.
The move comes in the run-up to Prime Minister Manmohan Singh's visit to Bangladesh on September 6 and 7.
The Bangladesh government, accused earlier of protecting the Ulfa, later changed its position after the Awami League came back to power in 2008.
Ulfa chairman Aravind Rajkhowa was picked up by Bangladesh security forces and sent to India, a move that paved the way for negotiations with the Rajkhowa group.
While a government release said the Ulfa had agreed to abjure violence and find a solution to the problems, Shambhu Singh, joint secretary (northeast) in the home ministry, said "The first round spells out the road to political dialogue."
Asked whether the outfit will surrender arms, its 'foreign secretary' Sashadhar Choudhury said they would wait to see how talks unfold.