Uncertainty prevails over the fate of the much-touted Rs 2,980 crore Shimla aerial ropeway project as the Himachal Pradesh Cabinet cancelled the tender for the project due to huge cost escalation while deciding to execute it under the public-private partnership (PPP) mode.Sources said the Cabinet, after due deliberations, decided to cancel the Ropeway and Rapid Transport System Development aerial ropeway project between Tara Devi and Shimla due to huge cost escalation from the initial Rs 1,734 crore to Rs 2,100 crore, which in recent weeks shot up further to Rs 2,980 crore amid the West Asia crisis.The proposed 13.65-km-long ropeway, the second-biggest aerial transport system in the world after La Paz in Bolivia, would have emerged as a major tourist attraction in the erstwhile British summer capital. The modern eco-friendly project was also expected to help the capital town tackle traffic congestion, vehicular emissions and roadside parking problems.The Cabinet, after approving cancellation of the Rs 2,800 crore tender, also decided to push the project under the PPP mode. Due to the escalation in cost, the Himachal Government’s share in the project, to be undertaken on an 80:20 cost-sharing basis, had increased from Rs 388 crore to Rs 540 crore.The much-awaited project, for which a single bid had been received despite the Himachal Pradesh Ropeway Transport Development Corporation floating global tenders thrice, was being viewed as a one-stop solution to the traffic woes plaguing the state capital.The Centre had also given its nod for the project after the state government sought clarification on whether it could proceed despite receiving only one bid.The project, which envisaged 13 boarding and de-boarding stations linking most parts of the town, was conceived in 2021-22. Though plans to connect various locations in Shimla through an aerial ropeway have been in the pipeline for over a decade, the grant of forest clearance for six hectares in October 2025 had revived optimism about the project finally materialising.With limited scope for road expansion, the ropeway was expected to help tackle traffic congestion, which becomes a major impediment to tourism promotion during the peak tourist season.The proposed ropeway had the capacity to ferry 3,000 persons per hour per direction. The latest mono-cable detachable gondola technology was to be used, with 660 cabins carrying 10 persons each available every two to three minutes.The ropeway was proposed to connect the entire town with stations at Tara Devi, Chakkar-Tutikandi Parking, Old Bus Stand, ISBT, 103 Tunnel, Victory Tunnel, Railway Station, Lift Point, Secretariat, Nav Bahar, Sanjauli, Indira Gandhi Medical College (IGMC) and Ice Skating Rink.