The former rebels are asking for the dissolution of the coalition government and the formation of a new 'national' government under their leadership.

If the government fails to reach a compromise within 48 hours, the siege of parliament will start.

It will prevent the Nepal government from getting the budget, tabled last month, passed by the house. It will also deal a blow to the government's mandate to promulgate a new constitution by May 2010.

The Maoists had kept parliament blocked for nearly two months since the fall of their government in May, demanding action against the president and chief of the army.

The dispute started over the former rebels' bid to sack the army chief, Gen Rookmangud Katawal. However, the president came to the general's rescue and reinstated him.

The clash caused the fall of the Maoist government in May and since then, the formerly underground party has been calling the president's gesture 'unconstitutional' and asking for it to be 'corrected'.