In a landmark move, Nepal's Parliament on Thursday voted to drastically curtail the King Gyanendra's powers stripping him of the control of the Army, reducing him to just a figurehead, while declaring the world's only Hindu Kingdom a secular state.

Coverage: The Nepal Crisis

A proclamation, unanimously adopted by the lawmakers of the reinstated Parliament, also asked the King to pay taxes and barred him from convening it.

The resolution, which comes three weeks after the multi-party government headed by G P Koirala came to power, said that his 'Majesty's Government' would be called Nepal Government and the Royal Nepalese Army would be named the Nepalese Army.

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Another important aspect of the proclamation is that the world's only Hindu Kingdom – Nepal - would turn into a secular state and the post of the Supreme Commander in Chief of the Army, which was held by the king till now, would be scrapped.

"The proclamation reflects the feelings of all the people," Koirala said in Parliament while presenting the resolution.

Nepal's Minister for Physical Planning and Works Gopalman Shrestha said the proclamation will come into effect immediately. However, the decision regarding the mobilization of the army will have to be endorsed within 30 days by a special committee formed by the Parliament, he added.

The Seven Party Alliance of Nepal had spearheaded an anti-monarchy agitation last month, forcing King Gyanendra to hand over power. The King had been ruling directly for 14 months after sacking the Sher Bahadur Deuba government in February 2005.

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Images: People's day in Nepal