The protesters picketed Singha Durbar secretariat that houses Prime Minister's Office on Tuesday, throwing traffic out of gear for hours.
Authorities have rejected calls by the monks to allow them to install a five-metre Buddha statue and shrine in Kakre Bihar, saying it is a protected forest area.
Despite a government formal request, over 76 organisations and Buddhist community picketed all four gates of the country's administrative hub.
"We will come up with the third phase of nationwide protests if the government continues to ignore our demand. We will wait and see for now," said Nagendra Kumal, chairman of Nepal Federation of Indigenous Nationalities.
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