Though the prime minister has rejected the accusation in parliament, the former guerrillas are likely to bring up the issue again in a bid to put pressure on Nepal's coalition government.

The India visit would also carry substantial diplomatic importance as Madhav Kumar Nepal has chosen to follow the tradition of Nepali PMs visiting India first after assuming office.

Last year, Maoist chief Pushpa Kamal Dahal Prachanda broke away from the tradition and decided to visit Nepal's northern neighbour China first, ostensibly to attend the conclusion of the 2008 Olympic Games.

However, the visit created a furore after it was interpreted as Prachanda, whose party follows the ideology of Chinese revolutionary leader Mao Zedong, trying to snub New Delhi and cultivate better ties with Beijing.

After his resignation in May, Prachanda said his China visit had angered India which engineered the fall of his government.

The new Nepali prime minister's visit to India would be preceded by a visit by Nepali Foreign Minister Sujata Koirala.

Koirala will arrive in New Delhi, possibly on a three-day visit, Aug 11.