Koirala, leader of the Nepali Congress (NC) party, was among 83 people freed Friday in Kathmandu, said a senior police official, who asked not to be named.

"All over Nepal, a little more than 200 people have been released," he said.

NC party spokesman Shovar Parajuli said Koirala, Nepal's first elected premier, was released from house arrest at 6:00 pm (1215 GMT) Friday. Parajuli had earlier said a total of 285 activists had been freed.

The 82-year-old Koirala had been held since February 1 when King Gyanendra sacked the government and declared emergency rule in the Himalayan outpost.

Among those rounded up during the emergency have been political and human rights activists, student leaders and journalists, many of whom were taken in when they staged anti-monarchy protests in defiance of a ban on rallies.

Nepal has come under increasing pressure from the world community, including international donors, to free the detainees and restore fundamental rights.

The Hindu kingdom relies on international donor aid and loans for more than half its development budget to prop up an economy devastated by a Maoist insurgency.

India has joined Britain in cutting off military aid to the country. Nepal's ill-equipped army depends heavily on foreign help to fight the rebels, who are battling to install a communist republic.

The United States has said it is mulling similar action.

Meanwhile, India, which suspended arms sales to Nepal after King Gyanendra seized power two months ago, welcomed the release Friday from house arrest of former Nepal prime minister Girija Prasad Koirala.

"The government of India welcomes the release ... of Mr G.P. Koirala, president of the Nepali Congress and respected senior political leader, who had been under detention at his residence," said a foreign ministry statement.

New Delhi said it hoped the freeing of Koirala would be followed by the release of "other political leaders and workers, human rights activists, student leaders, media personnel and civil society representatives presently detained under emergency provisions."

"(The) Government of India calls for the removal of all curbs on civil liberties and fundamental rights and the lifting of media censorship and restrictions on movement to enable the people of Nepal to enjoy their legitimate constitutional and democratic rights," the statement said.

This, it said, would help pave the way for reconciliation between the various parties "leading to a restoration of multi-party democracy."