Koirala to be PM, Maoists unrelenting

Leftists say their demand for polls to a constituent assembly not met

Former prime minister Girija Prasad Koirala will head the next government of Nepal, Arjun Narsingh KC of the Nepali Congress has said.

The decision was taken by the seven-party alliance which will spell out its plan for the interim government at a rally in Kathmandu on April 27.

The first challenge before Koirala emerged hours after the announcement, with the Maoists rejecting the king's offer to reinstate Parliament, saying it was a ploy to save his "autocratic monarchy". Maoist leader Prachanda said they would blockade the Capital.

Prachanda warned of violence against anyone who repressed the protesters, reducing to tatters the 12-point agreement the Maoists had reached with the seven parties late last year.

The Maoists said the "so-called king's address" had failed to address their demand for elections to a constituent assembly that could water down the king's sweeping powers during emergencies. They said their demand that Nepal be declared a republic had also not been met.

"The alliance, which has welcomed the king's address, has broken the 12-point understanding and breached the aspirations of the Nepali people," Prachanda said.

For the alliance, it was business as usual. Having decided the leadership issue, its leaders said they would implement their road map for restoration of full democracy and elections to the constituent assembly to resolve the crisis.

After Parliament is convened, it will form an all-party government, initiate a dialogue with the Maoists and start the process of elections to the constituent assembly, KC said.

"The new government will proceed on the basis of the alliance's road map and resolve the political crisis, including the Maoist problem," he added.

India expressed happiness at King Gyanendra's announcement that he was reviving Parliament. "There was a great deal of confabulation before that (the king's decision). There was lot of talking by Indian side and a lot of others. I think all necessary steps have been taken," National Security Advisor MK Narayanan told reporters in Berlin after the announcement. The US said the king should consider assuming a "ceremonial role."

In New Delhi, the cabinet committee on political affairs, presided over by Defence Minister Pranab Mukherjee, hailed the restoration of Parliament in Nepal.

"We await the convening of the revived House of Representatives and the installation of government as indicated by the seven-party alliance," Mukherjee told reporters after the meeting.

"This is a victory for the people of Nepal who have displayed extraordinary courage and reaffirmed their faith and commitment to freedom and democracy," Mukherjee said, adding that the "future of Nepal is in safe hands".