India is reported to be prepared to resume military aid to Nepal, dropping earlier demands that democracy had to be restored in Kathmandu first.
The French news agency, AFP, quotes an Indian foreign ministry official, who declined to be named, as saying Monday the decision had been made to resume the aid unconditionally. A similar report was heard in Nepal.
Such a move would break a three-month stalemate in relations between the neighboring countries.
Nepal's King Gyanendra and Indian Prime Minister Manmohan Singh met Saturday on the sidelines of the Africa-Asia summit in Indonesia where the king raised the issue of military aid.
India has been demanding that King Gyanendra restore democratic rule in order for military assistance to be resumed. The king seized absolute power in Nepal on February 1.
Some information for this report provided by AFP.