By Gopal Sharma

KATHMANDU, Feb 19 (Reuters) - Isolated King Gyanendra defended his short-lived grab for absolute power two years ago in a rare public statement that sparked protests from political parties that accused him of illegally meddling in politics.

The king, in an annual "Democracy Day" message to the nation, said he was forced to take power in 2005 to keep law and order amid a Maoist insurgency.

"It is clear that the prevailing situation compelled us to take the February 1, 2005, step in accordance with the people's aspiration to reactivate the elected bodies by maintaining law and order," the 59-year-old monarch said.

The king ruled with absolute power for only 15 months before violent street protests forced him to end his rule, reinstate parliament and hand power to a multi-party alliance that made peace with the Maoists to end a decade-old civil war.

Thousands of Maoist protesters shouting "End the politics of reactionary statement", rallied on Monday against the king as they marched in Kathmandu. Political parties said the monarch had violated the interim constitution by talking about politics.

The protests highlighted the unpopularity of a king who traditionally many Nepalis had considered an incarnation of Lord Vishnu, one of Hinduism's supreme trinity of gods.

King's Gyanendra's motorcade was stoned on Friday as the monarch drove to a Hindu pilgrimage site in the capital.

Nepal is due to hold elections for a constituent assembly this year that will decide on the future of the monarchy.

The king pledged his support for democracy on Monday but also appealed to Nepalis to "respect history", in an apparent appeal for the monarchy to be retained in some form.

The elections plan comes after a peace pact signed by the new government with the Maoists, ending the anti-monarchy insurgency that killed more than 13,000 people since 1996.

The multi-party government has since curtailed most of the king's powers, stripped his control over the army, subjected him to taxes and now plans to replace his picture from currency notes in favour of Mount Everest.

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