Shimla ropeway project stalled amid state’s poor financial health: Govt to HC

The proposed project was one of the most ambitious projects of the state government that aimed at alleviating traffic congestion in the city

Citing a “precarious financial condition”, the Himachal Pradesh government informed the Himachal Pradesh high court that it has stalled the proposed Shimla ropeway project.

The state cabinet in May had cancelled the tender for the much-touted ₹2,980 crore Shimla aerial ropeway project due to huge cost escalation. (HT File)

In an affidavit filed before the division bench of chief justice GS Sandhawalia and justice Bipin C. Negi, the state government said, “....the Shimla ropeways project proposal has been put on hold due to the state’s current precarious financial condition and the financial bid for the said project has been cancelled.”

The state government has also clarified, “However, RTDC is also exploring the possibility of developing the project through a financially viable mode (including a PPP with VGF) to minimise the state government’s expenditure.”

The proposed project was one of the most ambitious projects of the state government that aimed at alleviating traffic congestion in the city. The proposed ropeway spans a total length of 13.79 kilometres and was planned to consist of three separate lines. The design included a total of 13 boarding and de-boarding stations and one turning station.

Initially, the government had considered executing the project with external financial assistance, and the matter had been referred to senior officials in the transport department. The case would now be heard on December 1, 2026.

The state cabinet in May had cancelled the tender for the much-touted ₹2,980 crore Shimla aerial ropeway project due to huge cost escalation. The ropeway and rapid transport system development aerial ropeway project between Tara Devi and Shimla had witnessed huge cost escalation from the initial ₹1,734 crore to ₹2,980 crore amid the West Asia crisis. It will also be the world’s second largest ropeway after La Paz in Bolivia. Only a single bid had been received for the project. The ropeway was to run between Maa Tara Devi and Sanjauli, covering an area of approximately 60 kilometres, and connect 15 key stations across Shimla and nearby areas.