New Delhi: India yesterday(Apr 1,2007) welcomed the formation of an interim government in Nepal, saying it marks another step towards the implementation of the peace process and creation of conditions for free and fair elections there.

Expressing support to the process, New Delhi said it looks forward to working with the interim government to further strengthen the traditional close and mutually-beneficial bilateral relations.

"The Government of India welcomes the constitution of the interim government in Nepal under the leadership of Prime Minister G P Koirala," External Affairs Ministry spokesman Navtej Sarna said.

His reaction came hours after the interim government was formed in Nepal with inclusion of Maoists, who joined the mainstream after over a decade-long insurgency.

"The formation of the interim government marks another step forward in the implementation of the peace process and towards creation of conditions in which the people of Nepal can determine their future through free and fair elections to the Constituent Assembly," Sarna said.

He said India would continue its support to the people and political parties in Nepal to carry forward the peace process.