Lumbini Cable Car Revenue: 12 Crore Earnings and 2 Billion Hotel Expansion Plan

13th April 2026, Kathmandu

The Lumbini Cable Car Revenue story highlights a strong growth trajectory in the tourism and infrastructure sector of Nepal.

Lumbini Cable Car Revenue

Operated under the IME Group and led by prominent businessman Chandra Prasad Dhakal, Lumbini Cable Car Limited has reported impressive financial performance within a short operational period.

With a total operating income of NPR 12.30 crore in the current fiscal year 2081/82, the company is now planning a major expansion. This includes a luxury hotel project worth over NPR 2 billion, which will be funded through a combination of internal reserves, loans, and future IPO proceeds. As of April 2026, the project stands as a model for integrated tourism development in the Lumbini-Palpa corridor.

Strong Growth in Lumbini Cable Car Revenue

The Lumbini Cable Car Revenue has shown consistent upward movement over the past three fiscal years. This rapid growth reflects increasing tourist inflow and the strategic importance of the route connecting the plains to the hills.

Revenue Trends Over the Years:

• FY 2079/80: NPR 2.20 crore (Initial Phase)
• FY 2080/81: NPR 13.30 crore (Full Operational Year)
• FY 2081/82: NPR 12.30 crore (Current Fiscal Period)

Within the first six months of the current fiscal year alone, the company generated approximately NPR 5.30 crore. This indicates a steady and reliable demand for the service, making it a high-performing asset within the IME Group’s portfolio.

Key Drivers Behind Revenue Growth

Several factors have contributed to the rise in Lumbini Cable Car Revenue, making it a popular destination for both domestic and international travelers.

Religious Tourism: The cable car connects areas of deep spiritual significance, attracting thousands of pilgrims from across Nepal and neighboring India.

Cultural and Tourism Appeal: The corridor offers a unique blend of cultural experiences and scenic beauty, making it a must-visit spot in Western Nepal.

Domestic Travel Trends: A surge in local travel, particularly during weekends and major festivals, has significantly boosted passenger numbers.

Convenience: The 10-minute cable car ride provides easy access to the hills of Basantapur, bypassing a long and difficult uphill climb.

Route and Strategic Location

The cable car project plays a vital role in regional connectivity. It starts from the Terai region in Rupandehi and ends at Basantapur in Palpa. This linkage enhances the flow of tourists between the hot plains and the cooler hilly areas, providing a diverse climate experience within a single trip.

Religious and Cultural Attractions

The upper station area at Basantapur has been developed to include several important religious landmarks that drive footfall. These include:

• The Kamakhya Devi Temple.
• The Shiva Vahan Nandi statue.
• A 100-year-old Bhagwati Temple.

These sites significantly enhance the tourism value of the project and are primary contributors to the increasing Lumbini Cable Car Revenue.

Operational Efficiency and Profitability

The company has demonstrated exceptional financial efficiency in managing its operations. The operating profit margin increased from 42 percent in FY 2080/81 to a stable 50 percent in the current fiscal year. This 50 percent margin indicates strong cost management and revenue optimization strategies implemented by the management team.

Debt Management and Financial Structure

Lumbini Cable Car Limited has made notable progress in restructuring its finances. Approximately 26 percent of its outstanding debt, totaling around NPR 23 crore, has already been repaid. This was funded partly through a rights share issuance worth NPR 57.70 crore. Currently, only about 50 percent of the rights share proceeds have been utilized, with the remainder earmarked for upcoming infrastructure developments.

The NPR 2 Billion Hotel Project Plan

A major highlight of the expansion strategy is the development of an integrated luxury hotel at the upper station.

• Estimated Cost: NPR 2.25 billion.
• Location: Basantapur, Palpa (Cable Car Upper Station).

Objective: To transform the site into a complete tourism hub that offers transportation, luxury accommodation, and cultural experiences.

Funding Strategy and IPO Plan

To finance the massive hotel project, the company is exploring multiple capital sources. The remaining rights share funds will be used first, followed by bank loans which are currently under discussion. Furthermore, a future Initial Public Offering is being planned to raise additional capital and strengthen the equity base of the company.

Credit Rating and Financial Stability

ICRA Nepal has reaffirmed the credit rating of the company, reflecting its cautious yet stable financial approach.

• Issuer Rating: [ICRANP-IR] B+ (Stable).
• Long-term Debt Rating: LBB+.

Debt Limit Adjustment: The previous debt limit of NPR 1.04 billion has been revised down to NPR 73.20 crore, indicating a successful reduction in borrowing.

Future Outlook

The Lumbini Cable Car Revenue trend suggests strong future potential. As the company moves toward its IPO and the completion of the NPR 2 billion hotel, it is set to evolve into a fully integrated tourism destination. For investors, this represents a promising opportunity in the hospitality sector of Nepal, while for visitors, it promises an enhanced and seamless holiday experience in 2083 and beyond.

Conclusion

The performance of Lumbini Cable Car Revenue demonstrates how infrastructure and tourism projects can drive significant economic growth in Nepal. With annual earnings comfortably crossing the NPR 12 crore mark and plans for a massive hotel investment underway, the company is positioning itself as a dominant player in the national tourism sector. This integrated approach will likely serve as a blueprint for future cable car projects across the country.

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