KATHMANDU: The Nepal-Khanal faction of the CPN-UML is doing internal homework to form a new party.

The disgruntled faction has decided to break away to form a new party concluding that party chair KP Sharma Oli is bent on moving ahead with unilateral decisions.

The Nepal-Khanal faction has accused Oli of making preparations for the upcoming genera conventions through the unilateral amendment of party statute, renewal of memberships and the reformation of organizations at various levels.

Leader Jagannath Khatiwada, who is close to senior leader Madhav Kumar Nepal said, there is no option to forming a new party as Oli faction is moving ahead without the consulting the disgruntled faction.

Most of the leaders of the Nepal-Khanal faction are in favor of joining the government by forming a new party.

On the other hand, the leaders of the Oli faction have been accusing the Nepal-Khanal faction of being power-hungry rather than working for the party unity.

The Nepal-Khanal will render efforts to unite the party until the last resort and break away to form a new party when there will be no option left, said Khatiwada.

Leader Nepal has held separate discussions with the leaders close to him for their views prior to forming a new party, sources have said.

Meanwhile, leader Rachana Khadka close to Nepal has accused the Oli faction of breaching the 10-point agreement reached between the two factions.