Peace process & the federal republicगणतन्त्रको स्थापना

The Interim Constitution of 15 January 2007 brought the Maoists into the legislature — and instantly triggered the first Madhesh movement, as Terai communities demanded federalism and proportional inclusion. In the Constituent Assembly election of 10 April 2008 the Maoists won the most seats; at its first sitting on 28 May 2008 the Assembly declared Nepal a Federal Democratic Republic, ending 240 years of Shah rule. Ram Baran Yadav became the first president on 23 July 2008.

Consensus on federal boundaries proved elusive: the first Assembly dissolved on 27 May 2012 without a constitution. A second, elected 19 November 2013 under a chief-justice-led caretaker, was jolted into action by the April 2015 earthquake. On 20 September 2015, 507 of 598 members present adopted the Constitution of Nepal — seven provinces, three tiers of government, secularism, and quotas for marginalised groups.

Madhesi and Tharu parties rejected the province demarcations; protests killed more than 50 people, and from late September 2015 to 5 February 2016 an unofficial blockade of Indian border crossings — widely attributed to New Delhi's displeasure — choked fuel and medicine, deepening the post-earthquake crisis. Constitutional amendments in 2016 addressed some, not all, of the grievances.