Nepal's military said it was attacked by Maoists in the west
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Nepal's military says it has killed at least 30 Maoist rebels near the western town of Sandhikharka, in one of the bloodiest clashes since the royal coup.
The army said the fighting took place when rebels attacked a district headquarters on Friday.
King Gyanendra took direct control of Nepal on 1 February, saying the government failed to tackle Maoists.
India on Monday told Nepal's visiting foreign minister the king's coup could "endanger the monarchy".
'Deepen the crisis'
Nepal's military said in a statement on the fighting: "On 4 March, terrorists... fled after strong resistance by the security forces. In the action about 30 terrorists are estimated to have been killed and some injured."
No soldiers were hurt, it said. There has been no response from the Maoist rebels.
The military said it recovered "some crude bombs, terrorist documents and equipment used to operate mines".
In Delhi, India's external affairs ministry spokesman said visiting Nepalese Foreign Minister Ramesh Nath Pandey had conveyed King Gyanendra's commitment to restoring multiparty democracy "at the earliest" opportunity.
The spokesman said Mr Pandey had explained why the king had declared a state of emergency, detained political party leaders and imposed censorship on the press.
Mr Pandey is making his first trip abroad since the coup
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However, India's Foreign Minister Natwar Singh told his counterpart the measures had "served to only deepen the crisis facing Nepal".
Mr Singh said they "could endanger the institution of monarchy itself".
India said the king and political parties should come together on a national platform to deal jointly with the many challenges facing Nepal.
Mr Pandey, whose three-day visit is his first trip abroad since his appointment following the coup, said King Gyanendra was committed to relaxing some of the imposed emergency measures.
Also on Monday, Nepal's finance minister said he had told international donor nations at a conference in Paris that depriving the country of aid would "help terrorism flourish".
Finance Minister Madhukar Shumsher Rana said donors told him further aid would depend on an end to emergency rule.
Mr Rana said he "urged the donors to continue their support and also made it clear suspension of aid would help terrorism flourish".