More than 25 years after pioneering Nepal’s first cable car system at Manakamana, Chitawon Co-E Group is preparing to launch a second major cable car project, this time in Pokhara. The group, in partnership with the Agni Group, is investing Rs 1.6 billion in the proposed Pumdikot-Mahadev Cable Car Project, which aims to boost tourism and pilgrimage activity in the region.

According to Rajesh Babu Shrestha, Director of Chitawon Co-E, construction work is underway with the goal of commencing operations by July 2026. Land acquisition and environmental impact assessment are currently in progress. The 1.1-kilometer cable car line will link Pumdikot hill to the recently constructed Mahadev statue, offering views of Pokhara city and the Annapurna mountain range.

This marks Chitawon Co-E’s second foray into the cable car industry after the launch of the Manakamana Cable Car in 1998, a project that became a landmark in Nepal’s tourism infrastructure. Despite a growing number of cable car initiatives across the country in recent years, the group had remained solely focused on its flagship operation until now.

Shrestha said the new project is designed to replicate and build on the success of Manakamana, with a focus on long-term viability and tourism growth. The developers anticipate the new destination's novelty and scenic appeal will attract both religious pilgrims and leisure travelers.

The financing structure includes 80 percent debt and 20 percent equity, with ICRA Nepal conducting the project's credit rating to support loan arrangements. The project’s per-kilometer cost is estimated at Rs 1.45 billion, and its construction timeline is projected at 18 months. However, factors such as rising costs, interest obligations during the build phase, and unforeseen delays could affect the project's financial outlook. Once operational, debt repayment is expected to span over 11 years.

The project is being led by Rajesh Babu Shrestha of Chitawon Co-E and Arjun Prasad Sharma of Agni Group. Credit rating data indicates Chitawon Co-E’s total debt exposure currently stands at Rs 1.28 billion.

While other business groups in Nepal have recently begun entering the cable car sector, Chitawon Co-E Group remains recognized as a pioneer, credited with launching the country’s first system.