India should step in and help Nepal wipe out the rebels. Instead they're basically giving them safe haven. Many Indian states have leftist governments bordering Nepal which are basically traitors to India and useful idiots for the Chi-coms. They buy into all that pinko crap about the how the maoists are fighting for the poor and down-trodden.
You're right about the dirty communists in the state governments. The fact that the Federal govt. is supported by the communists doesn't help matters either. However, the situation outlined here does not provide the full picture. Nepal is an independent country and Indian troops cannot enter at will. The current king has to welcome Indian and Anerican help (which I have been wishing for).
The Nepal situation is not all that clear even today. The current king came to power in a coup in which all members of King Birendra's (who was pro-India) family were executed by the pro-Chinese current king (as you ae obviously aware). The king's loyalties are suspect and I think the ChiComs are playing the king off against the Maoists and supplying both sides in the process.
China's actions in Asia are troubling and I hope we have an America-India-Australia-Japan axis as soon as possible. Such an axis will restrict the ChiComs from expanding their sphere of influence. However, all this talk is meaningless as long as China is America's MFN partner.
It sounds to me like ultimately the Indians are their own worst enemies, at least in that regard (no offense to anyone of Indian background).