(Recasts, adds election chief says will deploy army for polls)

By Anis Ahmed

DHAKA, Nov 2 (Reuters) - Bangladesh said on Sunday a parliamentary election would be held as planned on Dec. 18 and that emergency rule would be relaxed, but still remain in place to ensure a smooth vote.

Previous elections have been marred by fraud, violence, rigging and stealing of ballot boxes. The chief election commissioner said soldiers will be deployed on the streets.

Both main parties, the Awami League and the Bangladesh Nationalist Party (BNP), want the state of emergency lifted completely.

The Awami League has indicated it will contest the election if there were a partial lifting, but the BNP has not yet decided.

Chief Election Commissioner A.T.M. Shamsul Huda said in a televised broadcast the last date for applying to contest the election would be Nov. 13.

He also announced schedules for rural government elections, for which nominations could be entered until Nov. 13 in preparation for voting on Dec. 28.

On Sunday the Awami League said it wanted the rural polls delayed by one month to allow more time between the two votes, while the BNP accused the election authority of favouritism towards the Awami League.

The government refused to lift the emergency completely, saying it preferred to keep it in a "substantially relaxed level" until the vote to ensure voter safety.

CLEAN VOTE

The commission plans to use transparent ballot boxes to avoid rigging, poll officials said. It will also employ a digital voter list prepared by the army, which enrolled more than 81 million people above the age of 18 eligible to vote.

Huda said violence and fraud would not be tolerated.

"We will take every measures needed, including deployment of troops, so that the voters feel fully confident of their safety ... on the road and while returning home after exercising their franchise," he said.

The election will cap nearly two years of emergency rule by the interim government, which took over in January 2007 following widespread political violence.

It cancelled an election due on Jan. 22 last year, banning political activity, protests and rallies, while launching a drive against corruption in public life.

The interim government headed by former central bank chief Fakhruddin Ahmed and the country's powerful armed forces have pledged to make the election free, fair and credible. They want all political parties to take part in the process of restoring democracy.

Likely front-runners in the election are former prime ministers Sheikh Hasina and Begum Khaleda Zia, who head the Awami League and the (BNP) respectively.

They alternated as prime minister of the impoverished south Asian country of more than 140 million for 15 years until October 2006 when Khaleda's second five-year term ended.

Both were arrested in a drive against corruption the interim authority launched early last year, along with dozens of their former ministers and close relatives.

The two women have been released on parole after being a year behind bars. They have both denied the corruption charges.

Analysts say both are popular among Bangladeshis and among the top choices to lead the country. (Additional reporting by Ruma Paul; Editing by Matthew Jones)

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