Nepal ex-rebels won't form government

Nepal's political parties met Wednesday to try and resolve the stalemate, but no agreement had been reached, said Arjun Narsingh of the Nepali Congress, which finished second in an April election.

"We still believe and want the Maoists to form and lead the new government. That was our earlier decision and we stick by it," Narsingh said. "We will not be an obstacle for them in this matter."

The Maoists secured the most votes in the April election for a Constituent Assembly, but did not win a majority of seats. Since that poll, Nepal's main political parties have been unable to agree on how to form a coalition government.

Maoist-backed independent Ramraja Singh lost Monday's presidential vote to Ram Baran Yadav, who was backed by the Nepali Congress, the Communist Party of Nepal (United Marxist-Leninist) and the Madhesi People's Rights Forum--the second, third and fourth largest parties, respectively.

Maoist leader Prachanda said Tuesday his party would act as the opposition after Singh lost the vote.

"After our candidate was defeated in the presidential election, we have lost the moral grounds to lead the new government," Prachanda said.

Yadav, meanwhile, was scheduled to be sworn in later Wednesday.

The Constituent Assembly dissolved the country's centuries-old monarchy in May and is supposed to rewrite the constitution and govern the nation.

Maoists gave up their armed revolt in April 2006 to join a peace process after 10 years of insurgency that left more than 13,000 people dead. They joined parliament and the government later.