Coinciding with a nation-wide campaign to ban the sale of liquor, Maoist women radicals Saturday set ablaze a distillery in Banke district causing Rs.300 million worth of damage, police and local officials said.

The militants attacked the Shah Distillery Pvt. Ltd. at Bagiswori despite assurances to eschew violence one day earlier in negotiations with government to ban liquor sale from Saturday.

Thousands of radicals encircled the factory and hurled petrol bombs setting the establishment ablaze as they turned back fire-fighters who had rushed to extinguish the fire.

Seven buildings, gallons of liquor and vehicles were reduced to ashes during the arson attack.

Banke is a stronghold of the Maoists.