Kathmandu, July 23 -- Six months after a special general convention triggered an internal power struggle in the Nepali Congress, the party's deepening rift remains unresolved, with leaders loyal to former president Sher Bahadur Deuba moving ahead with their plan to form a separate party.

On Wednesday, the two rival factions marked the 44th BP Memorial Day by holding separate programmes. Addressing a gathering organised by the dissenting faction, leaders warned that they would form a new party if efforts to reconcile with the Congress establishment led by Gagan Thapa failed.

The faction also announced a national gathering in Kathmandu on August 14 to chart its future political course.

Purna Bahadur Khadka, who leads the Deuba camp, said...