Nepal's King Gyanendra marked the first anniversary Wednesday of his seizure of power with a promise to push ahead with controversial local elections, as Maoist rebels launched major raids which killed at least 20 people.

A huge police presence meanwhile thwarted plans by Nepal's political opposition, which had branded the anniversary a "black day", to stage a mass protest rally in Kathmandu.

Gyanendra's speech drew an angry response from the parties -sidelined in the king's powergrab -who said the aid-dependent country was being pushed further into chaos.

An army official said around 1,000 rebel Maoists attacked at least five targets in Palpa district, 400 km west of Kathmandu, late Tuesday in ferocious assaults that lasted until dawn.

"After the fighting finished, we

found (the bodies of) three army personnel and 17 police officers," the official said, speaking on condition of anonymity.

The attacks began near midnight Tuesday and lasted until dawn Wednesday, he said, adding that of the 230 police officers on duty in Palpa overnight, 143 were still missing.

Gyanendra in a 20-minute televised address said the local elections, which he set for February 8 as part of his "road map" to restore democracy, would still be held. The rebels have threatened to "take action" against anyone taking part.

"The first and foremost preconditions for consolidating democracy are to gain the support of the people through the ballot and respect their mandate," the king said in his pre-recorded address.

"The process to reinstate all the elected bodies through free and fair elections has been initiated," he said, calling on the rebels to give up their campaign but making no direct

reference to his takeover of power last year.

"His address today has made it clear that he wants to prolong his autocratic regime," said the spokesman for the Nepali Congress Party, Krishna Prasad Sitaula.

"His address has pushed the country into further crisis and chaos. The demonstrations will continue."

However, the parties' plans for a mass rally at Kathmandu's Durbar Square, scene of violent clashes between police and protesters last month, fell flat after police moved in to prevent crowds gathering.

From midday scores of police, some armed, were seen stopping pedestrians, patting them down and searching their bags around the square, the historical heart of the capital.

Fewer than 100 protestors made it to the square for the rally called for 2:00 pm (0815 GMT) and handfuls of young men threw stones at riot police.