Kathmandu, Dec 22 (IANS): Nepal's ruling party is all set to split into two factions, one led by Prime Minister K.P. Sharma Oli and the other by former Prime Ministers Pushpa Kamal Dahal ‘Prachanda and Madhav Kumar Nepal. The two factions have already exercised the formation of two political parties.

While the Oli faction unilaterally called a gathering of party leaders on Tuesday, the Prachanda faction also held separate meetings and removed Oli as party chair and installed senior leader Madhav Kumar Nepal as party chairman after Prachanda.

Oli expanded the central committee by adding over 600 new members to maintain the majority in the party in case it splits. The Prachanda faction has opposed Oli's move to expand the central committee.

To challenge Oli, the rival faction led by former Prime Ministers Prachanda and Nepal on Tuesday forwarded a proposal to take disciplinary action against the PM and remove him from the post of party chairman.

The Nepal Communist Party (NCP) is the ruling party in Nepal and it has had two serving chairmen already -- Oli and Prachanda. After Nepal was picked as the next party chair, the ruling communist party has now three chairs.

Dispute and discord inside the ruling party has intensified after Oli dissolved the House of Representatives on Sunday.

A central committee meeting of the Prachanda's camp has decided to remove Oli from the post after the ruling Communist party plunged into a deep crisis following Oli's decision to dissolve the House.

Since Oli's decision to dissolve the House of Representatives after he failed to command a majority in his party, the two sides have been holding parallel party meetings.