Soaring ambitions: Ropeway firms swing to action to transform travel, tourism

If you've taken a ride on a ropeway anywhere in India, such as, say, in snow-clad Gulmarg (Kashmir) in January, you will know the exhilaration that comes from it. Apart from delivering that stimulus to tourism, ropeways also provide an added mobility option in a region.

More ropeways could find their way into your intinerary soon, as a plan from the Centre to step up their presence finds rising acceptance from operators. Companies like Usha Breco and Skyview by Empyrean, among others, are coming up swinging with plans to build more ropeways across the country.

This January, roads and highways minister Nitin Gadkari had announced plans to develop more than 200 ropeway projects valued at ₹1.25 trillion over the next five years. This idea is to revolutionize travel and tourism, particularly in mountainous regions. 

The minister had emphasized the benefits of reducing project costs and fostering public private partnerships (PPP) as catalysts for a proliferation of such projects.

Companies, projects and plans

Among the early adopters of this initiative is Delhi NCR-headquartered Usha Breco. Established in 1969 with its first passenger ropeway at Maa Mansa Devi in Haridwar, the company is currently evaluating four projects that could significantly expand its operational scope. 

With its existing projects spread across Gujarat, Uttarakhand, Kerala, Odisha and Assam, Usha Breco is actively seeking to extend its footprint using the build-operate-transfer (BOT) model in partnership with the government. 

Currently, it operates nine ropeways under the ‘Udan Khatola’ brand in places like Jatayupura and Malampuzha in Kerala, Girnar in Junagarh, Haridwar and Odisha.

Manoj Panwar, president of operations at Usha Breco, said that increasing domestic travel demand has elevated the role of ropeways at key tourist destinations. 

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Advancements in technology have simplified access to mountainous and remote areas via ropeways, making them crucial for urban and tourist transportation, Panwar said. 

In recent years, the company has invested more than ₹200 crore to develop ropeways at places like Jatayupara in Kerala and Girnar in Gujarat. A recent memorandum of understanding with the Uttarakhand government involves a ₹1,000-crore investment to initiate new projects, he added.

The company plans to spend about ₹25 crore annually over the next three years on maintenance and repair of existing facilities, funded through internal accruals. 

A November 2023 report by CARE Edge Ratings highlighted Usha Breco's strategy to boost its operational income above ₹250 crore while maintaining robust profit margins, facilitated by the addition of new ropeway projects.

Meanwhile, in Maharashtra, proposals for five new ropeway projects by private entrepreneurs are reportedly expected to receive approval soon. These projects, including an 8-km long urban mobility ropeway from Sewri in Mumbai to Raigarh’s Elephanta island, are set to enhance local transportation solutions.

Skyview by Empyrean, another key player in the hospitality and ropeway sector, is considering a project to overhaul the ski facilities in Uttarakhand's Auli region. Originally built in the 1970s, the existing ropeway and ski facilities in Auli are due for an upgrade.

The state government has proposed building a new ropeway and significantly improving the existing ski infrastructure, the company's managing director Syed Junaid Altaf told Mint, adding that the company has a comprehensive redevelopment plan for Auli.

“We are actively evaluating three to four projects under the government's PPP…We are also evaluating more ropeways in Jammu & Kashmir and the North East states," he said.

The company's existing ropeway at Patnitop in Jammu and Kashmir is not just a transport solution but is being developed into a comprehensive tourist destination. The company has earmarked ₹25 crore to increase its hotel rooms from the existing 15 to 100 in the next three years.

"We get 100,000 tourists annually on this ropeway…the highway between Jammu and Srinagar…(will be complete) in the next 18 months. That will help increase tourism to the union territory and most of the tourism infrastructure in this area should benefit from that," he added.

Srinagar-headquartered FIL Industries, the parent company of Skyview that was launched in 2014, collaborates closely with the government on revenue-sharing models and enhances regional tourism by integrating hotels, entertainment, and retail spaces with their ropeway projects. 

Currently, FIL is investing over ₹500 crore in building ropeway systems in Mussoorie and Yamunotri through a consortium arrangement.

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Additionally, FIL is set to expand its Dehradun-Mussoorie ropeway project by adding hotel rooms, with the ropeway construction budgeted at ₹300-350 crore and an additional ₹100 crore planned for hotel development in the subsequent phase. Operations are scheduled to start in 2026, and the company also plans to develop a dining complex on a four-acre site at the valley's summit.

Ropeways and infrastructure

India's ropeway industry, although small with only a few full-time companies like Usha Breco and Damodar Ropeways & Infra Ltd (DRIL), plays a crucial role in the infrastructure landscape, often partnering with road construction firms under the hybrid annuity model (HAM) for implementing highway projects.

In January, Gadkari had underlined the government's commitment to supporting ropeway development with 60% construction funding under the HAM, which is higher than the support extended for national highways, to attract more private investment. 

In a HAM project, private players construct the project and have no role to play in the ownership and toll collection, while the government releases a part of the project cost to them. Sometimes private players go with the BOT model and sometimes they just do the engineering, procurement and construction.

Ropeways offer a viable and economical alternative to traditional public transport systems, especially in less populous cities where large-scale metro systems are not feasible, Altaf said. 

With capacities ranging from 3,000-4,500 people per direction per hour, ropeways can significantly enhance urban mobility in tier-II and tier-III cities, he added.

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