Saturday, April 22 2006 15:25 Hrs (IST) - World Time -

New Delhi: Welcoming Nepal King Gyanendra's decision to hand over executive power to the people as a 'significant step forward,' Prime Minister's special envoy Karan Singh today (Apr 22, 2006) warned of a 'deeper crisis if the seven-party alliance refuses to form a Government.

"The King's decision, though belated, is a significant step forward in resolving the political turmoil in Nepal.There may be differences in some quarters but the seven-party alliance should soon take the responsibility of forming a government," Singh told reporters on the sidelines of a seminar here.

He, however, cautioned that Nepal would plunge into 'deeper crisis' if the alliance hesitates and refuses to form the Government.

Singh said the Government of India had not put forward any new suggestions after the King's latest statement.

Asked about the demand of some constituents of the alliance that the Maoists should also be included in any future dispensation, Singh said it was 'wrong' to insist thata government can take shape only after inclusion of the rebels in it.

"As far as the Maoists are concerned, let the political parties first assume power. They can then negotiate with the Maoists. You don't expect the King to talk to them. Let the parties discuss with the rebels and try for a ceasefire," he said adding, however, that this would take some time.

"There are issues like release of political prisoners, economic reconstruction, law and order etc that has to be resolved," Singh said.

Asked about the reported plans of some political parties to frame a new Constitution that does not have any role for the monarch, Singh said India favoured a constiutional monarchy in Nepal.