The Millennium Challenge Corporation (MCC) Compact will not be tabled in the House even on Friday.
The meeting of ruling coalition held at Baluwatar decided to not table the MCC Compact even on Friday after failing to reach consensus on the issue, according to a leader who attended in the meeting.
Speaking to reporters after the meeting Government Spokesperson and Minister for Communication and Information Technology Gyanendra Bahadur Karki, however, said that the coalition is on the way to ratifying the MCC Compact.
"We discussed about how to resume House proceedings and how to take the MCC Comapct to the House," Minister Karki said. "We will again meet at 10 tomorrow morning for additional discussion. PM has said it should be ratified by February 28. Discussion is on that direction."
CPN (Maoist Center) Chairman Pushpa Kamal Dahal and CPN (Unified Socialist) Chairman Madhav Kumar Nepal had reached a deal with Prime Minister (PM) Sher Bahadur Deuba on Saturday wherein the two parties would boycott the House proceedings in protest against the MCC Compact and allow its ratification through the majority of those present on the floor.
PM Deuba had accordingly planned to table the MCC Compact in the House on Wednesday. But the parliamentary party meeting of Maoist Center held Wednesday morning decided to quit the government if the government forcibly tries to ratify the MCC Compact without amendment.
PM Deuba agreed to not table the MCC Compact in the House as planned earlier on Dahal's request after that. He still wanted to table the MCC Compact in the House on Friday but has now agreed to not do so following the coalition meeting on Thursday.
The coalition will again meet on Friday.
Dahal also held a meeting with Deuba in Balwuatar earlier on Thursday.
The ruling coalition is divided on the issue of MCC with Nepali Congress (NC) trying to get it ratified. Maoist Center and Unififed Socialist have been saying it should not be ratified without amendment.
Janata Samajwadi Party (JSP) has said it will take decision only after Maoist Center and Unified Socialist take one even as Federal Council Chairman Baburam Bhattarai has been vocally supporting the ratification challenging those opposing it to quit the government.
America has already said that the US$ 500 million grant will be taken back if it is not ratified by February end and ruled out any amendment on the MCC Compact.
This news has been updated after first being published.