President Bidya Devi Bhandari has reappointed CPN-UML Chairman Oli, 69, as Prime Minister, after he lost a trust vote in the House of Representatives on Monday.
The Office of President in a press statement on Thursday evening said that President Bhandari reappointed KP Sharma Oli as Prime Minister in his capacity as leader of the largest political party in the House of Representatives as per Article 78(3) of the Constitution of Nepal, reported NDTV.
According to the report, President Bhandari will administer the oath of office and secrecy to Oli at a ceremony at Shital Niwas on Friday.
The president had asked the Opposition parties to come up with the support of majority lawmakers to form a new government by 9 pm Thursday after Oli lost the vote of confidence in the House on Monday.
Oli's appointment came shortly after Office of President said that no two parties or more than two parties came to lay claim to forming coalition government by the given deadline that expired at 9 PM.
Oli will now have to take a vote of confidence at the House within 30 days, failing which, an attempt to form a government under Article 76 (5) would be initiated. Should both the steps fail, the House may face dissolution and the country will move towards the direction of early elections, The Himalayan Times reported.
Although Nepali Congress president Sher Bahadur Deuba had received support from CPN Maoist chairman Pushpakamal Dahal "Prachanda", he could not get support from Janata Samajwadi Party (JSP).
JSP's President Upendra Yadav had assured to support Deuba but the party's another president Mahanta Thakur had rejected the idea.
Nepali Congress and Maoist Centre have 61 and 49 seats in the lower house. Their combined strength was 110, which is insufficient to win majority vote.
At present 136 votes are needed to form a majority government. JSP has 32 seats in the House. If JSP had extended support Deuba would get a chance to claim for PM.