At a time when the country is passing through a coalition era, President A P J Abdul Kalam on Thursday favoured the need to rapidly evolve a stable two-party system.

This is one of the many challenges facing the nation, he said in his address to Parliament to mark the 150th anniversary of the first war of independence.

"Many challenges need to be responded to: the emergence of multi-party coalitions as a regular form of government, that need to rapidly evolve as a stable, two party system," the President said in perhaps his last public function in Parliament.

Kalam's term is ending on July 24.

The President listed the need to strengthen internal security, address the problem of widening economic disparities as also depletion of global fossil fuel reserves and fight increasing threats to country's territorial security by development of new forms of warfare.

Kalam did not elaborate on these issues but preceded his remarks saying, "We cannot afford to rest content with past achievements and ignore recent developments that call for a change in technology, industry and agriculture."

Prime Minister Manmohan Singh said the events of 1857 stand as a great testimony and tribute to traditions of Hindu-Muslim unity in India.

Paying homage to martyrs, he urged people to ensure that 'their sacrifice is not in vain.'

"It is our responsibility to build a nation free from want and rid it of the ancient scourge of poverty, ignorance and disease," he said.

Singh said both Karl Marx and Benjamin Disraeli, watching the events from London and from two very different ideological perspectives, conceded that the uprising was nothing short of a 'national revolt.'

Highlights of the hour-long function were the rendition of Lagta Nahin Hai Dil Mera, ghazal of Bahadur Shah Zafar, by Jagjit Singh and Shubha Mudgal's presentation of Subhadra Kumari Chauhan's famous poem on the Rani of Jhansi.

Noted lyricist Gulzar stole the show through rendition of '1857 - a nazm (poem),' in which he brought alive the fervour and passion of 'Inquilab' (Revolution) as also the scene in contemporary India.

The President was seen applauding the noted writer and film-maker that drew cheers from the assembled august audience.      

Vice President Bhairon Singh Shekhawat favoured setting up of a museum of the national freedom struggle 1857-1947 which, he said, would be the 'light-house to guide and inspire the youth and motivate them for building a strong nation.'

Speaker Somnath Chatterjee, who was the brain behind the function, said, "As a nation, we should abjure efforts to divide us on grounds of caste, creed, region or religion, and that will be the best way to pay our true homage to great freedom fighters of the country."

The President said, "The time has now arrived for Parliament and legislative assemblies to emerge with a new vision and leadership to make our nation not only enlightened, united, harmonious, rich and prosperous but above all, a safe nation, invulnerable for ever to invasion and infiltration across its borders."

Kalam, who began his speech in Hindi, asked young MPs to 'come out of small aims.'