IBN’s 64th Meeting: PM Oli Approves Muktinath Cable Car, Hydropower, Railway Cooperation & Industrial Projects

The 64th meeting of the Investment Board Nepal (IBN), chaired by Prime Minister KP Sharma Oli at Baluwatar today, endorsed several transformative infrastructure and energy initiatives poised to reshape Nepal’s economic landscape. Among the most anticipated approvals was the green light for the ambitious Muktinath Cable Car Project, alongside major hydropower ventures, industrial proposals, and plans for international cooperation in the railway sector.

A key highlight of the meeting was the approval of an investment proposal from Muktinath Darshan Pvt. Ltd. to develop an 81.04-kilometer cable car line connecting Seraphant (Birethanti/Nayapul) in Parbat district to Muktinath in Mustang. With seven planned stations along the route, the project is estimated to cost NPR 57.64 billion and will be executed under the Build-Own-Operate-Transfer (BOOT) model. The cable car is expected to provide easier access for pilgrims and tourists to the revered Muktinath temple while creating substantial employment opportunities for local communities.

To negotiate the Project Development Agreement (PDA), the Board formed a dedicated committee led by IBN CEO Sushil Gyawali, tasked with finalizing the terms and ensuring alignment with national priorities.

“The Muktinath Cable Car will not only enhance pilgrimage and tourism but also energize local economies along the route. It’s a strategic infrastructure step that blends tradition with innovation,” said PM Oli during the session.

In addition to this flagship project, the meeting also approved three hydropower investments aimed at strengthening Nepal’s clean energy production:

• Chilung Khola Hydropower Project (43.2 MW)

• Bajhang Upper Seti Hydropower Project (216 MW)

• Bakan Khola Hydropower Project (44 MW)

Further, IBN will initiate an in-depth study of the 750 MW West Seti reservoir project, one of the largest hydropower undertakings in the country, with an estimated investment of NPR 160 billion. The project has long been viewed as crucial for both domestic energy security and future electricity exports.

In a significant move toward international collaboration, the Board also agreed to seek Cabinet approval for a draft agreement with Korea Rail, opening doors for potential cooperation in Nepal’s underdeveloped railway sector. This could mark the beginning of more extensive railway development with technical expertise and investment from South Korea.

On the industrial front, the Board endorsed proposals to set up a refined edible oil industry in Janakpur, and gave the nod to further planning for IT parks at various strategic locations—an initiative expected to attract tech-based investment and digital innovation.

The 64th IBN meeting reaffirmed the government’s commitment to fast-tracking large-scale projects that will stimulate economic growth, reduce unemployment, and enhance Nepal’s infrastructure capabilities across sectors.