The Federal Alliance, a grouping of agitating Madhesi parties and ethnic groups, reached an agreement on issues related to Constitution amendment and local polls.
Agreement was reached between the agitating Madhesi parties and the government representatives on fast track endorsement of revised Constitution amendment bill and to conduct local elections in two phases, according to a statement issued by the Prime Minister's office.
"The Alliance would take part in local level elections only after the revised Constitution amendment bill gets endorsed in the Parliament," said Rajendra Mahato, a senior leader of the alliance.
Meanwhile, a cabinet meeting endorsed the agreement that the ruling parties forged with the Federal Alliance, and decided to hold the local level elections in two phases.
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Earlier in the morning, Prime Minister Prachanda had held consultations with chief Election Commissioner Ayodhi Prasad Yadav and main opposition leader and CPN-UML chief K P Sharma Oli and discussed the matters relating to local polls and Constitution amendment.
The local bodies election taking place after a gap of two decades would empower the people and distribute power from Singha Durbar government secretariat to villages, he said appealing to all to participate in the polls.
Madhesi parties had earlier warned the government that they would disrupt the local elections if their demands, including proportional representation in Parliament, are not addressed.
The Madhesi parties, who claim to represent the interests of inhabitants of the southern Terai region who are mostly of Indian origin, have been demanding that the Constitution promulgated in 2015 be amended to revise the provisions of citizenship and re-demarcation of the provincial boundary before going to the May polls.