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Sushil Koirala has to share power with a rival party, pass a constitution and ease tensions with disgruntled Maoists.
Move ends months of political deadlock after the monarchy was removed.

Sher Bahadur Deuba, the former Nepali prime minister, has been freed from prison after the Supreme Court dissolved the controversial anti-graft panel that jailed him.

Maoist rebels have ambushed two police trucks in Nepal, killing 21 policemen and wounding 12.
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