Kathmandu. Lumbini Cable Car Limited, promoted by IME Group, has made remarkable financial progress within a short period of its commercial operation. According to ICRA Nepal, the cable car operated from Butwal of Rupandehi to Basantapur of Palpa has earned a total operating income of Rs 123 million in the fiscal year 2081/82.
Prior to this, the company had a turnover of Rs 13.30 crore in the fiscal year 2080/81. The cable car, which came into operation from May 29, 2023, is playing an important role in reviving religious and tourism activities in Lumbini Province. The company is owned by Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Five-star hotel worth Rs 2.25 billion in Palpa
The company has started the process of constructing a five-star hotel with the aim of developing integrated tourism destination at the Upper Station of Cable Car (Basantapur of Palpa). The estimated cost of the hotel project is Rs 2.25 billion. Currently, the hotel design is in the early stages
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The company is in discussion with banks and financial institutions for loan investment to raise capital required for the construction of the hotel. The company also plans to raise more capital through an initial public offering (IPO) in the near future.
Financial Condition and Debt Management
The company has issued right shares worth Rs 57.70 crore and repaid Rs 230 million in advance from the amount received, which has reduced the debt burden of the company. The operating profit margin of the company is around 50 percent, which is considered to be commercially positive.
Despite the business success, the company is facing some challenges. According to ICRA Nepal, the number of passengers using cable cars has declined by 26 percent in the fiscal year 2025. As a result, there has been some contraction in operating income.
In addition, competition from other luxury hotels operating in Butwal-Bhairahawa area and fluctuations in the tourism sector are seen as challenges for the company. Since the hotel project is a big investment, the main responsibility of the company will be to complete the construction on time and manage the finances.
Religious Tourism Center
After a 10-minute journey by cable car, the Basantapur area is surrounded by religious structures such as the temple of Kamakhya Devi, the Shiva vehicle Nandi, and the 100-year-old Bhagwati temple. This area has become a major attraction especially for Indian tourists and domestic tourists.
ICRA Nepal has retained its rating at ‘B’ plus, considering the company’s financial performance and the experience of its promoters. IME Group has the experience of operating Chandragiri and Maulakali cable car before this, so this project is believed to give good results in the long run.
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