The situation in the district headquarters had turned tense following clashes between Maoist youth wing Young Communist League (YCL) and CPN-UML´s Youth Force (YF).
The dispute took a nasty turn after Maoists burnt nine motorcycles and a Maruti car belonging to YF members.
The local administration has enforced curfew orders in the district headquarters since Tuesday.
Chief District Officer Kali Prasad Parajuli informed that they have agreed to relax the curfew orders after 9 p.m. on Wednesday and lift it with effect from Thursday morning.
They also agreed to form a probe committee and to compensate the vehicle owners on the basis of the committee´s findings. They will be compensated within nine days after the committee to be headed by Assistant CDO Omkar Neupane submits its reports.
With the agreement, locals are hopeful that the situation in the district will be normalized.