Nepal's PM Oli quits just before no-confidence vote after allies depart

Nepal's Prime Minister Khadga Prasad Sharma Oli has resigned, nine months after coming to power, minutes before parliament was to vote on a no-confidence motion he was likely to lose.

Oli, 64,  , also known as KP Oli, was forced to quit after allies of his multi-party coalition deserted the government accusing him of not honouring power sharing deals that helped install him as prime minister in October.

"I have already submitted my resignation to the President when I met her before coming to the house," said Oli in a speech in parliament just ahead of the scheduled no confidence vote on Sunday.

Oli came to power in October when the Maoists offered his party parliamentary backing to build a coalition.

The main Maoist party now has withdrawn the support accusing Oli of reneging on past promises.

Neighbours India and China compete for influence in Nepal and are both likely to be concerned by the prospect of more instability in a country struggling to rebuild after a devastating earthquake last year.

Oli, Nepal's seventh prime minister since it abolished its 239-year old monarchy in 2008, survived an attempt by the Maoists to unseat him in May after he reached a power-sharing deal.

The Maoists accuse Oli of failing to resolve anger in the south of the country over a new constitution, and of failing to rebuild homes and roads destroyed in last year's earthquake.

Nepal adopted a new constitution in September. Its passing looked like a rare moment of political consensus but protests soon followed.

Minority Madhesis, who live mostly in Nepal's lowlands near India, imposed a four-month border blockade to protest against a proposal to carve Nepal into seven federal states, which they say would divide their homeland and deprive them of a fair say.