New Delhi: India today (Feb 9, 2007) welcomed Nepal government's decision tomeet demands of the Madhesi population and hoped that such issues of thatcountry would continue to be resolved through dialogue and negotiations.

New Delhi said it stands ready, as always, to extend its full support to theefforts of the government and people of Nepal in the ongoing process ofdemocratic transition in which 'significant milestones' have already beenachieved.

"We welcome Prime Minister G P Koirala's address to Nepalese nation onWednesday, addressing the demands of Madhesi population of the country and thefact that the address reflects a consensus among the eight political parties,"External Affairs Ministry spokesman Navtej Sarna said here.

The reaction came after Koirala announced that all the major political parties,including the Maoists, have unanimously agreed to declare the nation a federalstate, meeting the key demand of protesting Madesis of Terai region.

In his address to the nation, Koirala said the government will immediatelyamend the Constitution to fulfil the genuine demands of the Terai people.

Terai has been witnessing widespread violent protests over the last few weeksover this demand.

"We are saddened by the loss of lives and violence in the Terai in thelast few weeks. It is our hope that the government and friendly people of Nepalwill continue to resolve such issues through dialogue and peaceful negotiations,"Sarna said.