To what extent is the Maoist project in Nepal headed towards a future proletarian state, which is what the Communist Party of Nepal (Maoist) claims in its party documents? Alternatively, is the project headed towards the formation of a radical left-nationalist, anti-imperialist state, fostering "economism"? The article first presents the main strands of social movement thinking, which are then critiqued for overlooking the question of political power and the deep structural unity between capital and the state. In contrast, it is subsequently pointed out, the Maoists have taken the question of political power as fundamental to their project of revolutionary social transformation. The paper argues that the Maoists' stated ideological objective of smashing the present state order and developing a new proletarian state does not seem to be adequately confirmed by the flow of their current practice. They seem unable to develop alernative organs of proletarian political power at the centre in order to consolidate the gains made in the base areas.