The rebels, who have been waging a "People's War" since 1996 to install a communist republic, detonated five powerful bombs in western and eastern Nepal late Thursday heralding the anniversary. There were no casualties.

"We are nearing victory," said Maoist leader Prachanda, which means "fierce one", in a statement, adding the rebels were fighting a revolt "against old power and hegemony."

But other commentators disagreed that the guerrillas, inspired by Chinese revolutionary leader Mao Zedong but disowned by Beijing, were close to winning their fight in the once peaceful tourist destination known for its snowcapped Himalayan peaks.

"The Maoists who fought for fundamental rights by ending class discrimination and exploitation of the rural poor have failed to achieve their political goal," said National Human Rights Commission member Kapil Shrestha.

"They've resorted to using guns to gain their demands and if a free election is held, they wouldn't even win a dozen seats," he said.

The conflict has turned into one of the world's deadliest with an average of 13 people killed a day or more than 10,400 since the revolt erupted, said Subodh Raj Pyakurel, president of the Informal Service Centre human rights group.

"Maoists have lost about 6,500 activists while 1,400 civilians have been killed. The rest were the army and armed police personnel," he told AFP.

The revolt in the nation, which sits as a buffer between India and China, is also one of the world's most brutal with human rights groups accusing both the armed forces and the Maoists of human rights atrocities.

Human rights groups say the Maoists carry out executions and kidnappings, and torture prisoners, extort money, forcibly conscript fighters and use child soldiers.