PM's party demands his resignation
In another sign of Govt's eroding support, thousand of supporters of the PM's own party took to the streets demanding his resignation.
About a thousand supporters of the prime minister's own party took to the streets in the Nepalese capital to demand his resignation - a further sign of eroding support for the government after weeks of mass protests.

It was the first time members of the Rastriya Prajatantra Party openly called for the resignation of Prime Minister Surya Bahadur Thapa, member of the party who was appointed by King Gyanendra.
"The government has become an obstruction in the process to restore peace. Our demand is a government represented by all the political parties," said Pashupati Sumshere Rana, chairman of the party which is loyal to the king.
Nepal's five largest political parties have organized almost daily protests over the past several weeks to demand a return to democracy after the king dissolved an elected government in 2002. Some of the rallies have drawn tens of thousands of people. Supporters of the Rastriya Prajantra Party, however, were careful to emphasize that they remain loyal to the king, who has been a frequent target of the protests.
"We support constitutional monarchy and democracy in this country," Rana said.
There was no reaction from the government, but the prime minister in the past has said he served at the pleasure of the king and was under no obligation from the party to step down.
In October 2002, the king fired Prime Minister Sher Bahadur Deuba, accusing him of incompetence and failing to quell a Maoist insurgency. He then dissolved Parliament, assumed executive powers and appointed a new government.
The opposition, which claims the current government is pro-monarchy, rejected an invitation last week to meet with Gyanendra and are demanding a new government that includes members from all five major parties.