Nepal's provisional Parliament approved a motion on Friday to abolish the monarchy as part of negotiations with former Maoist rebels to move a peace deal forward.

The provisional Parliament voted for Nepal, once the world’s only Hindu kingdom, to become a “federal democratic republican state”. The motion was passed by a majority of 270 votes in the 329-seat Parliament, which includes the Maoists. Three votes were cast against it. Live TV showed parliamentary officials reading out the result.

The vote comes days after the Government agreed to abolish the Himalayan nation’s nearly 240-year-old monarchy, one of the few left in Asia. The decision ended months of political deadlock with the once-feared Maoist guerrillas.

But Nepal would become a republic only after the decision is endorsed by the first meeting of a special Assembly, which is due to be elected by mid-April next year.

Officials said King Gyanendra would continue to live in the palace without any powers until after those elections. “But if the king creates serious hurdles in the elections he can be removed by a two-third majority of the interim Parliament before the polls,” the motion said. There was no immediate comment from the king.

In yet another major development, prominent leaders from various parties formed a separate regional party—Terai Madhes Loktantrik Party with an objective to have provinces with the right to self-determination.

Former minister Mahantha Thakur, who had quit the Nepali Congress Party, was elected president of the new party.

“I announce the formation of Terai Madhes Loktantrik Party. Our aim is to achieve a republic, democratic, federal Nepal with the right to self determination,” Thakur said. He made it clear that the Government must address the problems of terai before it goes to polls.