Prachanda said that the local elections and the process of Constitution amendment would go simultaneously.
In a televised address to the nation, Prachanda said that some secessionist forces have been trying to divide the nation using the dissenting parties in Madhes and warned that the government would not tolerate such kind of activities under any circumstances.
"The government was compelled to announce the date for civic polls after the main opposition CPN-UML did not allow the House to discuss the Constituent amendment bill though the original plan was to announce the date for the polls after addressing the issues of the Madhesi, Janajati and Tharuhat communities," Prachanda said.
The Madhesi parties, that have been demanding more representation in all state mechanism, are opposing the local body elections slated for May 14.
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Madhesis, mostly of Indian-origin, launched a six-month- long agitation from September 2015 to February last year in which more than 50 people were killed.
Prachanda said the government has been working to bring the Madhes-centric parties on board the elections.
"Election is a big festival in a democracy," the Prime Minister said.
The Prime Minister asked the Madhes-centric parties to use the elections as an opportunity to raise their issues further.
Meanwhile, the United Democratic Madhesi Front has said it would boycott the local elections if their demands were not met through Constitution amendment.
"We won't take part in any election before amendment to the Constitution," said Manish Suman general secretary of Sadbhawana Party, one of the members of the alliance, following a joint meeting of the Madhes-based parties' alliance.
During a meeting with Prime Minister at the his office in Kathmandu, the Chinese envoy said the Nepal-China relationships so far had been very cordial and development projects in Nepal being carried out with Chinese support had been moving ahead in a satisfactory manner.
The Prime Minister said that the government was committed to holding the polls as per schedule and asked for China's help for the same.