Adani’s 42% Revenue Share Bid Enables Govt To Earn From Kedarnath Ropeway Without Investment

In a recent bid, Adani Enterprises has quoted a revenue share of approximately 42 per cent with the National Highway Logistics Management Ltd (NHLML), enabling the government to earn from the newly approved Kedarnath ropeway project without investing any capital, according to a report by TOI.

This recent development comes as the Cabinet Committee on Economic Affairs (CCEA) approved the construction of 12.9 km ropeway project from Sonprayag to Kedarnath in March. Subsequently, NHLML initiated the bidding process, which had to be cancelled twice due to various technical and financial issues.

After several adjustments were made, fresh bids were invited, leading to Adani Enterprises' successful offer.
The CCEA, chaired by the Prime Minister Shri Narendra Modi, sanctioned the project to be developed under the Design, Build, Finance, Operate and Transfer (DBFOT) mode in public-private partnership. With an estimated cost of Rs. 4,081.28 crore, the project will employ the advanced Tri-cable Detachable Gondola (3S) technology with a design capacity of 1,800 passengers per hour per direction (PPHPD), potentially transporting 18,000 passengers per day.

Currently, the journey to Kedarnath temple involves a strenuous a 16-km uphill trek from Gaurikund, undertaken either on foot or by ponies, palanquins and helicopter. The upcoming ropeway is expected to drastically reduce the one-way travel time from 8-9 hours to just about 36 minutes, offering pilgrims a faster, safer, and more comfortable travel experience, especially during harsh weather conditions.

Moreover, the government expects the ropeway project to generate numerous employment opportunities as well as boost the tourism and hospitality industries located in the region. During the announcement, Information and Broadcasting Minister Ashwini Vaishnaw estimated that the project could bring in 36 lakh tourists annually, a significant jump from the 23 lakh visitors recorded last year.

Concurrently, the government also approved a 12.4-km ropeway project from Govindghat to Hemkund Sahib Ji in Uttarakhand. Like the Kedarnath project, this ropeway will be developed on the DBFOT model, with an estimated cost of Rs 2,730.13 crore.

The Hemkund Sahib ropeway will feature a Monocable Detachable Gondola (MDG) system covering the 10.55-km stretch from Govindghat to Ghangaria, seamlessly transitioning into a 1.85-km 3S ropeway from Ghangaria to Hemkund Sahib Ji. It will have a capacity of 1,100 PPHPD, with the potential to ferry up to 11,000 passengers per day. The travel time is expected to be reduced from the current 12-hour trek to approximately 45 minutes.

Minister Vaishnaw also noted that 1.77 lakh people visited Hemkund Sahib Ji last year. With the new ropeway in place, the number of pilgrims is expected to rise tenfold. Additionally, the project is likely to attract more tourists to nearby attractions such as the Valley of Flowers National Park, enhancing the region's ecological and cultural tourism appeal.

Both the Kedarnath and Hemkund Sahib projects are part of the National Ropeways Development Programme - Parvatmala Pariyojana, and are estimated to complete within the next 4 to 6 years.