"India has high stakes in seeing a lasting solution to the Maoist problem in Nepal. We hope the Maoists join the political mainstream and there is a workable deal between them and the new government," a top official said here.

The Maoists have shown a willingness to join the political mainstream in Nepal after their main demand - elections to a constituent assembly - was accepted. But officials and experts here say that there are still "lots of ifs and buts" before the rebels democratize and join the political establishment for good.

"There are lots of ifs and buts. If the deal doesn't work out, they can go back to violence. And that will be catastrophic for Nepal and distressing for India," the official told IANS.

Rajan Bhattarai, a leader of the Communist Party of Nepal-Unified Marxist Leninist (CPN-UML) who has lived here for some time, is confident that the new government would be able to partner the Maoists to create "a new Nepal".

"The Maoists have already announced a three-month ceasefire and they now see the point in joining the political process," Bhattarai told IANS.

However retired Gen. Ashok Mehta, a Nepal expert and author of "The Royal Nepalese Army (RNA)", sees the road of reconciliation in Nepal littered with many a landmine that can blow up a fragile peace if issues are not handled delicately.

"The point is not whether the Maoists will come on board. They are already in Kathmandu. The real question is how long will they remain on board. And that's a cause of worry for India," said Mehta.

As the government makes its moves in Kathmandu, there is nervousness in New Delhi. India played a crucial behind-the-scenes role in brokering a 12-point agreement between the seven-party alliance (SPA) of the opposition and the Maoists on restoration of democracy in Nepal after weeks of political turmoil.

Later, Communist Party of India-Marxist leader Sitaram Yechury proposed a four-point formula that was accepted by all parties. It called for the revival of parliament, formation of an interim government, elections to a constituent assembly and talks between the Maoists and the new government.

But some of the tough demands made by the Maoists before they join the democratic process is worrying India.

The success of elections to a constituent assembly would depend on the Maoists renouncing violence and participating in the poll. But the rebels are insisting on depositing their weapons with a third party or an international body and are demanding that the Royal Nepalese Army do the same.

"Now that's an impossible condition to meet. How can you expect the state army to disarm?" asks Mehta.

In a recent interview, Maoist leader Baburam Bhattarai has said that the rebels would keep their weapons till a constituent assembly was elected.

Another source of friction was a demand for the merger of the People's Liberation Army with RNA. "Meshing together a guerrilla outfit and conventional army will be hard to accept," points out Mehta.

Besides, it's not yet clear how sincere are the Maoists in adopting the parliamentary strategy to achieve power.

"The Maoists have made certain commitments. We will see how sincere they are and judge them by deeds rather than words," another Indian official told IANS.

Also, the links between the Maoists in Nepal and those in India are well known. India would like to know if they have stopped collaborating or not -- if not, it would be an additional headache for the Indian establishment.