Nepal's opposition Maoist party has called off the nationwide general strike declared on Monday, but said its protests against the coalition government would continue after Prime Minister Madhav Kumar Nepal agreed to scrap a controversial deal with India to print modern Nepali passports.

"We had primarily called the general strike to protest against the government's decision (to award the passport contract to Security Printing and Minting Corporation of India)," Maoist chief and former prime minister Pushpa Kamal Dahal Prachanda said. "We are withdrawing the strike (as the government has agreed to revoke the deal)."