In a landmark move, Nepal's interim Parliament on Friday voted to abolish the world's last Hindu monarchy, putting its stamp of approval on an agreement between the Maoists and the government to end the current political stalemate.

The motion was passed by a majority of 270 votes against three in the 329-member parliament, Nepali Congress vice-president Gopalman Shrestha said.

The decision to declare Nepal a democratic federal republic will, however, be subject to ratification by the Constituent Assembly to be elected by mid April.

However, King Gyanendra would continue to live in the Narayanhiti Palace without any power until after the elections when the fate of the 239-year-old institution will be decided by the Constituent Assembly.

Prime Minister Girija Prasad Koirala is currently enjoying all powers of the head of the state and the executive head as well.

The Parliament has also approved the mixed voting system under which 335 of the total 601 seats will be elected through proportionate voting and 240 through direct voting. The Prime Minister will nominate the remaining members.

The Parliament has also endorsed the governments decision to hold the crucial constituent assembly polls, which have been put off twice, by mid-April or end of the current Nepali year 2064.

However, the exact date will be fixed by the government.

A 23-point deal signed by the Seven Party Alliance including the Maoists early this week ended a three-month deadlock over the former rebels' demands to declare Nepal a republic before the Constituent Assembly polls and a fully proportional voting system.

The Communist Party of Nepal-Maoist (CPN-Maoist), which quit the government on September 18 to press their demand for abolition of the monarchy, has agreed to rejoin the interim government, though no date has yet been finalised.

The Constituent Assembly will rewrite Nepal's Constitution and hammer out the details of a new political structure for the country.

Nepal's King Gyanendra has already been stripped of most of his powers, including his roles as head of state and army chief, after a 'Peoples' Movement' forced him to end a 14-month direct rule in April 2006.

The CPN-Maoist joined the pro-democracy protests against the monarchy last year that forced King Gyanendra to give up direct rule.

The Maoists, who were fighting for abolition of monarchy, declared a ceasefire, signed a peace agreement and joined Nepal's parliament in January and the government in April this year.

The decade-long Maoists insurgency left at least 13,000 people dead in the Himalayan state.

http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20070037127&ch=12/28/2007%208:31:00%20PM