Younger brother to Gangalal Shrestha, one of the four great martyrs of the Nepali democratic revolution, Pushpa Lal joined the political fight against the autocratic Rana regime at a young age, some time after Gangalal's martyrdom in early 1941.

After his meeting with the noted Indian communist leader Nripendra Chakrawarti, he settled upon founding a communist party, deeming the support of the international socialist movement an indispensable asset in the struggle for democracy.

He followed the radical faction led by Tulsi Lal Amatya in forming a separate Communist Party.

In 1968, as the Sino-Soviet split intensified, the power-sharing agreement with Tulsi Lal Amatya was failing.

Beginning with academic year 1973 – 1974, it hosted a science faculty along with programs on humanities, education and management.