Nepal's Seven-Party Alliance (SPA), spearheading the pro-democracy movement, on Monday night welcomed King's Gyanendra's announcement to revive Parliament saying "this is the victory of the Nepalese people."
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The SPA is going to meet on Tuesday morning to discuss their future course of action.
"This is the victory of our joint movement, Nepali Congress general secretary Ramchandra Poudyal said.
This will lead to a solution to the current political crisis including the Maoist problem, he said.
The political parties have got both the authority and responsbility. With the reinstatement of Parliament, the dialogue with the Maoists will be initiated and election to the constituent assembly will be held to bring the Maoists into the political mainstream, Poudyal said.
Nepali Congress (Democratic) acting President Gopal Man Shrestha also welcomed the announcement saying "this is a positive step and we welcome it."
There are reports of victory processions being taken out in some parts of the country, including capital Kathmandu well after mid-night.