Tuesday, February 1 2005 14:03 Hrs (IST) - World Time -

Kathmandu: King Gyanendra of Nepal today (Feb 01, 2005) announced in an address to the nation that he had dissolved the coalition Government led by Prime Minister Sher Bahadur Deuba.

"I have exercised the rights given to the crown under the present constitution and dissolved the Government for the larger interests of the people, country and protection of sovereignty" King Gyanendra said in his address.

Accusing political parties of "indulging in factional fighting," the monarch said, "In fact all the democratic forces and political leaders should have united to protect the country's democracy, national sovereignty, people's life and property and also protect the country's economic infrastructure."

"Innocent children were found massacred and the Government could not achieve any important and effective results. The crown traditionally is held responsible for the protection of national sovereignty, democracy and also people's right to live peacefully."

"It is the duty of the crown to protect all these segments of society," he said.

King Gyanendra had appointed Deuba as Prime Minister last year and asked him to conduct Parliamentary elections and hold peace talks with the Maoist rebels.

Earlier, the king had sacked Deuba in 2002 for failing to hold elections, but asked him to form the Government last year as the rebels stepped up insurgency in the Himalayan kingdom.

King Gyanendra said a new cabinet would be formed under his leadership. "This will restore peace and effective democracy in this country within the next three years," the king said.

Security forces and plainclothesmen were stationed at Government offices and at residences of several political leaders.

"I do not know whether I am under house arrest, but there are plainclothesmen posted outside my house. The communication services too are erratic," a political leader said.