I could figure out the problem. I was getting following warning on startup of eclipse.
The Maven Integration requires that Eclipse be running in a JDK, because a number of Maven core plugins are using jars from the JDk.
Please make sure the -vm option in eclipse.ini is pointing to a JDK and verify that
Installed JRE's are also using JDK installs
I changed eclipse.ini file and added following and restarted eclipse
-vm
C:/Program Files/java/jdk1.6.0_21/bin/javaw.exe
Now I can see "Maven Dependency" library included automatically in java build path.