Tuesday, April 25 2006 17:45 Hrs (IST) - World Time -

New Delhi: King Gyanendra's decision to revive Parliament in Nepal has been received with a sense of relief by the Indian government which has now turned its focus on how things play out in the Himalayan Kingdom hereafter.

The decision of the seven-party alliance (SPA) that has spearheaded the pro-democracy movement which has forced the King to yield, has been welcomed in official circles here. "The ball now is in the court of SPA," official sources said today.

However, reports from Nepal that the Maoists have rejected the King's offer to reinstate Parliament and decided to continue their campaign against the monarchy have come as a dampner. The Maoists had reached a 12-point agreement with SPA last year and the hope here is that they stay together.

New Delhi, in fact, wants the Maoists to join the political mainstream and participate in Parliamentary elections after giving up violence.

As for the King, India sees a ceremonial role for him because a Constitutional monarchy would add to political stability in Nepal. Whether Gyanendra would be able to stay on as a ceremonial Head of State depended on his own conduct over the coming weeks.

Information available here indicates that the King was thinking of imposing emergency and using force to deal with street demonstrators last week. India stepped in quitely to tell him that such a course would be disastrous.

The economic situation in Nepal is a source of considerable worry with the Indian government which is planning an economic package and financial aid for the country.

There has been no formal reaction here to Gyanendra's announcement on natioal television last night that he was reviving Parliament as the Foreign Office is in a "wait and watch" mode.

However, National Security Advisor M K Narayanan, travelling with Prime Minister Manmohan Singh in Germany, said in Berlin last night, "Finally, perhaps the King has seen the errors of his ways because he has already gone on air toannounce his willingness to restore Parliament".

"There was a great deal of confabulation before that (King's decision). There was a lot of talking by Indian side and lot of others. I think all necessary steps have been taken," Narayanan said.

He said political parties in Nepal have more or less indicated that they will accept it (King's decision) and "We hope to have interim government in a couple of days."

He, however, pointed out that the King has not specified under which provision he would restore Parliament.

He also sought to rubbish the observation by certain quarters that the King's earlier announcement was too little too late.