The army has been on high alert since a rebel ceasefire collapsed
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Nepal's prime minister has said his government must "crush" an insurgency by Maoist rebels, before it can hold national elections.
Surya Bahadur Thapa was at his first news conference since King Gyanendra made him prime minister in June.
He said some preparations would be made
for early elections in the country, but he did not set a date for these.
The king sacked the elected government in December 2002, amid a Maoist rebel struggle to abolish the monarchy.
Government 'unconstitutional'
Prime Minister Thapar said the government would set up defence forces in villages to tackle a rise in Marxist violence in rural Nepal.
The BBC's Naveen Khadka in Kathmandu says there had been speculation that Mr Thapar would also announce dates for early elections in Nepal.
However, Mr Khadka said on Tuesday that parliamentary and local elections would only take place if there was an improvement in the security situation.
The political groups which formed the government dismissed by King Gyanendra last year say Mr Thapa's administration is "unconstitutional".
Peace talks between the government and Maoist rebels collapsed in August this year, because of disagreement over the continued influence wielded by Nepal's monarch.
The Maoists want a new constitution for Nepal to remove the monarch's authority, the government is not prepared to accept this.
Skirmishes between Maoist rebels and the army have become increasingly frequent and bloody since the collapse of the peace process.
The rebels have spent the best part of the last eight years in a struggle that has claimed around 8,000 lives.