In realpolitik, I believe that India\'s interest should be of more importance than ideals and egaletarian views. In that sense, engaging Nepal\'s goverment is a constructive option than letting them loose.
In any case maoists are a terrorist organisation and it should be treated and you must support opposite side.
Revolution by arms is a thing os the past - It probably was a valid approach in 1917. Not in 2005.