The deadline set by the Nepalese president for a consensus government ends on Saturday. However, political parties are nowhere near a consensus.
On Friday, they struggled to form a new coalition to pull the country out of a crisis sparked by Prime Minister Prachanda's attempt to fire the country's army chief. The President had asked the parties to name a new prime minister by Saturday.
Meanwhile, the Maoists have been protesting both in the streets and in parliament since Prachanda stepped down.
About 200 Maoist supporters rallied near the president's house on Friday.
Police in riot gear and batons blocked them and did not allow them to reach the gates. There was a brief scuffle between the protesters and the police, but no one was injured.
Meanwhile, as political uncertainty looms over Nepal, Maoist Leader Baburam Bhattarai has told NDTV that India must not allow the perception that it has interfered in the controversy over the sacking of the army chief, whether it is true or not.
Recognising the role India has already played in bringing about the peace deal in 2006, he said India is Nepal's most powerful neighbour and Nepal was committed to strong ties with India.
He added that the interference might have been the handiwork of individual bureaucrats rather than India's political leadership, which is busy with elections.
Sources confirmed on Friday that India's ambassador the Nepal Rakesh Sood met Prime Minister Prachanda four times in two weeks but only at the prime minister's invitation.