Government preparing to regulate cable car business
20th Feb, 2018 | Tourism Mail Crew
KATHMANDU, Feb 20: The government is planning to start regulating the cable car business in light of increasing interest of the private sector in cable car projects. The government is making preparations to build regulations regarding the cable car fare charged to customers by existing and under-construction cable car projects. Previously, businesses were free to set any rate they wished.
The Ministry of Physical Infrastructure and Transport has prepared the draft for the "Ropeways Licensing Directory 2074". With the implementation of the rule, safety criteria as well as the ropeway fare will be specified according to the location by law. The ministry plans to present the draft to the council of ministers with the formation of the new government. It is also yet to clarify specifics about the nature of cable car royalties and the licensing processes.
A cable car project will be required to have 5 million rupees as bank guarantee to be approved. Similarly, the cable car company will owe the government 2% of the entire revenue of the cable car ticket sales as royalty for the first 15 years, and 5% from the 16th year onwards. The licensing charge for a project of upto 300 million will be Rs. 1.5 million rupees, and 0.5% of the total investment of any project of over 300 million.
The cable car fare is to be defined by a government committee which will suggest a proposal after due discussion.