The Maoists called off their seven-month ceasefire last month
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More than 35 Maoist rebels have been killed in heavy fighting with Nepalese security forces, officials say.
It is the biggest clash between the two sides since the rebels pulled out of a ceasefire last month.
There has been no comment from the rebels who are preparing to enforce a three-day strike in the country.
The authorities have tightened security measures ahead of the strike.
Rebel stronghold
The Nepalese authorities say the security forces killed the Maoist rebels in the western hill district of Rolpa on Wednesday.
They said some 100 rebels were wounded in the clash, in which four soldiers were killed.
Officials say the fighting began when soldiers returned fire coming from a remote hill village.
Patrols and checks have increased ahead of the rebels' strike
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The BBC's Sushil Sharma in Kathmandu says the area is a major rebel stronghold.
The authorities say that the army has taken the area under its control and has recovered the bodies of 35 rebels.
News of the attack came hours after the authorities announced new security measures to prevent violence during a strike called by the rebels which is due to start on Thursday.
Motor-cyclists have been banned from wearing tinted glasses or carrying pillion passengers for a week.
The authorities fear motor-cycle-based attacks by Maoist rebels who have called the strike to put pressure on the government for a new constitution.
A night curfew has also been introduced in Kathmandu and some other areas.
Army and police security patrols have been stepped up along with identification checks.
Mounting pressure
Violence has increased significantly since the end of the ceasefire.
Information minister Kamal Thapa said necessary measures had been put in place to ensure a normal life.
Despite mounting pressure on both sides, there are no signs yet of a resumption of the peace process.
Mr Thapa said the government was ready for talks but insisted that the rebels must first renounce violence.
The rebels also say they are ready for a dialogue but want the government to agree on a constituent assembly that will draw up a new constitution.
They believe this will clear way for their goal of replacing the monarchy with a communist republic.
Disagreement on the constitution led to the breakdown of the ceasefire and the general strike call.
Strikes called by the Maoists disrupt business and daily life because many citizens are afraid to defy them.