The last time scenes like this were seen so close to the royal palace was during the People's Movement in 1990.

All this week, student protestors and police fought pitched battles in the centre of Kathmandu. Many were injured as police charged students shouting inflammatory anti-monarchy slogans. Having failed to galvanise popular support for their agitation, the five-party alliance has now instructed their student wings to "go all out" with republican slogans.

The protests are getting more violent, and some analysts fear it could spiral out of control. The students now say they will continue their agitation even if party bosses call it off, and they have warned politicians not to sell out to the king.

Inside the palace, King Gyanendra has been meeting a slew of political leaders one-by-one to head off an escalation. Politicians say they have so little trust in the king's motives that they have to keep up the pressure on the streets.

Gagan Thapa, the student leader arrested two weeks ago on charges of sedition, told us: "We are not going to tolerate it if the parties reach an agreement with the king. We want the king out of politics." Students admit the Maoists have infiltrated their ranks and joined the rallies. Senior minister Kamal Thapa said the government was aware of the possibility of Maoist penetration. "That is why we want the students to carry out their protest rallies responsibly," he said.

Maoist leader Prachanda has tried to capitalise on the turmoil with a statement Thursday accusing the king of trying to divide the parties by meeting them. But fissures have again appeared in the five-party alliance: the Congress wants restoration of parliament, the UML favours an all-party government, while the Deuba faction wants its prime minister reinstated.

The parties may not be able to present a common consensus to the king even if he asks for one to defuse tensions.