It said Congress had won 103 seats out of the 188 results declared so far in the 205-member House of Representatives in the country's third election since multi-party democracy was established nine years ago.

Nepal's constitution requires that a party must win a minimum of 103 seats in the 205-member lower house of representatives to rule the nation, which is among the most poverty-stricken in the world.

State radio said the Congress' arch-rival, the Communist United Marxist-Leninist Party, had won 64 seats to become a strong opposition in parliament.

Nepal has been torn by instability since a 1994 election produced a splintered parliament. A succession of six short-lived and weak coalitions or minority governments hampered economic development, which is 60 per cent funded by Western donors.

The Congress party had 83 members inthe previous lower house. The UML had 89 deputies before its rank were split into two factions last year.