The seven-party alliance in Madhesh Province has agreed that the Nepali Congress will lead the new government. Leaders reached an understanding on Friday afternoon after hours of negotiations, and they are preparing to stake their claim later in the day.

Congress moved ahead after the Loktantrik Samajbadi Party withdrew its claim. The party has put forward its parliamentary party leader Krishna Prasad Yadav for chief minister. LSP provincial assembly member Upendra Mahato said the alliance reached a deal once his party stepped aside.

The decision comes a day after talks ended without agreement, as both Congress and LSP had refused to drop their bids. Congress argued that all parties have already led the province and that it is now its turn. LSP insisted it deserved another chance because the previous government under Jitendra Sonal had fallen early.

The province head has called for government formation under Article 168(2) of the constitution, asking any assembly member who can secure majority backing from at least two parties to present a claim by 5pm on Friday.

The call followed the resignation of Chief Minister Saroj Kumar Yadav, who stepped down after the Supreme Court ordered him to seek a vote of confidence within 24 hours. He resigned during Wednesday’s assembly meeting, saying he saw no path to secure support. He served 22 days in office.