In an exclusive interview to NDTV in Kathmandu, Prachanda has described that fears in India that he is moving closer to China are ridiculous.

Prachanda also said that 'if he is still in power, then signing a new friendship with China is not on his agenda in the near future'.

Meanwhile, with no progress made on the Saturday deadline set by President Pushpa Kamal Dahal to form a new coalition government, Nepal's woes continue.

The president ordered the country's parliament to elect a new prime minister on Sunday. But Maoist MPs vacated their seats and approached Speaker of the House chanting slogans.

The Maoists warn they will only join the new government if the president reverses his decision on firing the army chief.

Technically it would be possible to form a government without the Maoists, but sidelining them could further rock the country's fragile stability.