As it watches with concern the fresh political trouble in Nepal, India on Monday hoped the Himalayan country would resolve the crisis in a manner that contributes to early conclusion of the peace process.

"What is happening in Nepal is internal to Nepal. We wish Nepal well in its transition to a fully democratic polity," External Affairs Minister Pranab Mukherjee said in a statement here.

He said India would "hope that that the present crisis (in Nepal) is resolved in a manner which contributes to the early conclusion of the peace process."

Mukherjee's statement came hours after Nepalese Prime Minister Pushpa Kamal Dahal 'Prachanda' resigned following controversy over sacking of Army chief R Katawal, plunging the country into fresh political crisis.

"We would hope that the broadest possible political consensus would make it possible for Nepal to concentrate on the agreed tasks of Constitution-making and of democratic transition," the External Affairs Minister said.

India had played a key role in bringing the Maoists and the mainstream political parties together three years ago under a peace process.

New Delhi is worried that the confrontation between Maoists and other parties would lead to fresh unrest in Nepal.