KATHMANDU: In a major development, an agreement has been reached as Muktinath Cablecar Pvt Ltd entered into an initial Memorandum of Understanding (MoU) with K&R Rail Engineering Ltd, based in Hyderabad, India.

The MoU pertains to the contract and investment for the Nayapul/Beerethati – Muktinath Cable Car Project, which is licensed by the Nepal Government Investment Board.

Under the terms of the MoU, K&R Rail Engineering Ltd has agreed to take on the Engineering, Procurement, and Construction (EPC) contract for the project, as well as provide the project loan in a non-convertible currency.

The project has been in the works for two years, with the completion of the detailed project report (DPR) study and the environmental impact assessment (EIA) now in its final stages.

Muktinath Darshan Pvt. Ltd. has successfully acquired ninety percent of the land required for the project.

The financial resources for the project are nearing completion, as the necessary loan arrangements will be made through the EPCF (Engineering, Procurement, Construction, and Financing) structure.

In terms of project financing, two percent of the cost will be contributed by the affected areas through reserved shares, seven percent of shares will be made available for general interest, and the remaining 11 percent will be designated as promoter shares. The estimated cost of the project is 55 billion.

Upon completing the remaining administrative and legal processes necessary for project development, a comprehensive agreement with K&R Rail Engineering Ltd will be finalized based on the current situation.

The project is expected to be completed within a maximum of 48 months from the date of laying the foundation stone.

The MoU was officially signed by Sridhar Sapkota, Managing Director, representing Muktinath Cablecar Pvt Ltd, and KP Kalra, Chairman of K&R Rail Engineering Ltd, representing the EPCF contractor.