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King of Nepal sacks government

The Indian government has voiced 'grave concern' after King Gyanendra of Nepal sacked the country's government and declared a state of emergency.

India has said the developments constitute a serious setback to the cause of democracy in Nepal.

King Gyanendra sacked the government today, declared a state of emergency and assumed power, saying the leadership had failed to hold elections or to restore peace amid an escalating civil war with rebels.

Security has been stepped up at border crossings into the Himalayan kingdom.

It is also reported that phone lines have been cut, flights to the capital have been cancelled and the press is being censored.