At least 21 people who were stuck midway in seven other cable cars following the mishap have been rescued, they said.
"The incident occurred when the cable car, carrying pilgrims, was descending to the base of the Bamleshwari Devi temple hills," Dongargarh Sub-Divisional Police Officer Ajit Yadav told PTI.
The temple lies on the hilltop at the height of 1600 feet and one can reach there on foot by climbing 1027 small steps.
"The trolley which was in the front hurtled down and crashed into a rock injuring its four travellers, including two women," Yadav said.
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As a result, three other cable cars which were coming down and four trolleys which were ascending to the hilltop got stuck midway, he said.
After getting information about the incident, Indo-Tibetan Border Police and local police rescued the 21 persons trapped in seven trolleys after the two-hour-long operation, he said.
"An elderly woman, identified as Bindu Mishra who had suffered serious injuries in the crash, succumbed during treatment in Rajnandgaon. Her husband Brijbhusan Mishra (71) and relatives Hemlata Mishra (38) and Radhemohan Mishra (35) are kept under observation," Yadav said.
A case has been registered in this connection and stern action will be taken against those found guilty in the probe, he said.
Meanwhile, Dongargarh Nagar Palika chairman Tarun Hathel alleged that lack of maintenance of the rope-way resulted into the incident.