India has been a major source of military assistance
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India has confirmed that it has halted all military supplies to Nepal.
A spokesman at the Indian Embassy in Kathmandu said the military aid had been stopped because of the royal takeover of power earlier this month.
India had been one of the major arms suppliers for Nepal's army, with 70% of the aid coming in grant form.
Military hardware exported by Delhi to Nepal comprised mainly rifles, helicopters, mine-protected vehicles and other equipment.
Takeover criticised
"As of now, many aspects of our bilateral relations are being re-assessed and reviewed. But as far as military supplies are concerned, they are on hold as of now," Indian embassy spokesman Sanjay Verma told Reuters news agency in Kathmandu.
The BBC's Navin Singh Khadka in Kathmandu says confirmation of the aid cut came after the Indian ambassador to Nepal, Shiv Shankar Mukherjee, returned from Delhi where he held consultations with his government last week.
India has always backed multi-party democracy in Nepal
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The Indian government has opposed King Gyanendra's takeover of power, calling for the restoration of multi-party democracy and constitutional monarchy.
It has also called for the release of all detained political leaders, human rights activists and journalists.
Our correspondent says Nepal has relied on the Indian government for the extradition of Nepalese Maoist leaders.
The Indian authorities have extradited two senior Maoist leaders to Nepal in the last year while they have detained two others.
After the royal takeover, the Indian government has made no comment on what it will do if Nepalese rebels are found in India in the future.
Meanwhile a nationwide transport blockade of Nepal by the rebels has entered its 10th day with no sign of serious food shortages in Kathmandu.
King Gyanendra says it was necessary to seize power because Nepal's democracy was at "grave risk" from the Maoist insurgency and political instability.
The rebels have ruled out an early resumption of peace talks that collapsed in August 2003.