KP Sharma Oli was appointed Nepal’s prime minister for a third time on Sunday.

He will lead the new coalition government led by his Communist Party of Nepal (Unified Marxist–Leninist) and the Nepali Congress, led by former Prime Minister Sher Bahadur Deuba.

Oli’s predecessor, Pushpa Kamal Dahal Prachanda, lost the vote of confidence in the House of Representatives – or Pratinidhi Sabha – on Friday, leading to the formation of the new government.

Prachanda’s Communist Party of Nepal (Maoist Centre) is now the third-largest party with 32 seats in the 275-member Lower House. The Nepali Congress has 89 seats and Oli’s Communist Party of Nepal-Unified Marxist–Leninist has 78.

Nepal has seen the collapse of three governments since its fourth parliamentary elections in 2022. Prachanda was the prime minister in all albeit with different coalition partners. He was able to retain the top post despite his party not having the majority in the House.

Oli is widely seen as being pro-China, and Kathmandu’s ties with Beijing are expected to become closer in his tenure, reported PTI.

The communist leader’s election is being viewed as a cause for concern for New Delhi, amid its tussle with Beijing for influence in the landlocked country.

Oli has promised to recover, through dialogue, territory under India’s administrative control that is claimed by Nepal, reported The Indian Express.

In 2016, when Oli was the prime minister, Kathmandu signed the Transit and Transport Agreement with Beijing that would allow Nepal, a landlocked country, access to Chinese ports if it faces an economic blockade by India.

Oli had taken a hardline stance against India when it imposed an economic blockade on his country for four months in 2015.

India and the United States have also advised Nepal not to execute projects under China’s Belt and Road Initiative, a multitrillion-dollar infrastructure scheme launched in 2013 by President Xi Jinping that envisions rebuilding the old Silk Road to connect China with Asia, Europe and beyond.