Nepal PM Prachanda resigns

Nepal Prime Minister Pushpa Kamla Dahal Prachanda has resigned amid the standoff between the government and the Maoist rebels. He announced his resignation in a press conference in Kathmandu.

On Sunday, Prachanda had sacked army chief General Katawal accusing him of defying the government's orders by reinstating eight Generals retired by the Maoist administration, the president told the army chief to remain in the post.

The crisis follows months of tussle between the prime minister and the army chief over the induction of former Maoist rebels into the army.