Foreign Secretary Shyam Saran on Tuesday held talks with Nepal's King Gyanendra during which he is understood to have discussed the Maoist insurgency and restoration of multi-party democracy in the Kingdom.
Bilateral relations also came up for discussion during the nearly two hour parleys Saran had with the King at the Narayan Hiti Royal Palace.
India, which stopped military aid to Nepal after the King assumed power in February dismissing the democratically elected government of Deuba, had sent part of non-lethal military aid to the Kingdom following assurances from the King to Prime Minister Manmohan Singh in Jakarta that he would initiate moves towards multi-party democracy.
Last month the two leaders met in Dhaka on the sidelines of the SAARC Summit during which Singh made it clear to the King that restoration of democracy was not possible without the involvement of political parties.
The Nepal monarch, who seized power by overthrowing the elected government of Sher Bahadur Dueba on February 1, said he was prepared to take steps in this regard.
Before his meeting with the King, Saran called on Nepali Congress President Girija Prasad Koirala and Nepal Communist Party-United Marxist and Leninist General Secretary Madhav Kumar and discussed the current political situation including the Maoist problem.
The talks with the Nepali leaders mainly focused on bilateral issues, current political situation, the ongoing seven party agitation for restoration of democracy and the Maoist problem, Nepali Congress spokesman Krishna Sitaula said.
"India has been providing moral support to the democratic movement of Nepal, and it wants to see restoration of democracy and early return of peace in the country," Sitaula quoted Koirala as saying after his meeting with Saran.
During his meeting, Koirala told Saran there was a need to find a political solution to the Maoist problem.
"The way out of the ongoing conflict should be sought through the process of dialogue, he said. India has taken positively the seven party movement for restoration of democracy and welcomed the 12 point understanding reached between Maoist and the parties, he said quoting Koirala, and added that India's stand had not changed.
Saran is scheduled to meet Foreign Minister Ramesh Nath Pandey and interact with journalists at the Indian Embassy before leaving for Delhi.
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