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India and ADB sign USD 126 million loan to strengthen Tehri Lake tourism and local development

#Taxation & Finance News#Infrastructure#India
Last Updated : 16th Sep, 2025
Synopsis

India has secured a USD 126.42 million loan from the Asian Development Bank (ADB) to promote sustainable tourism and rural development in the Tehri Lake area of Uttarakhand. The project aims to improve infrastructure, sanitation, disaster preparedness, and climate resilience, benefiting over 87,000 residents and attracting around 2.7 million annual visitors. It includes support for women, youth, and small businesses, development of inclusive tourism facilities, and implementation of nature-based solutions to reduce flood and landslide risks. The initiative aligns with Uttarakhand's policy of boosting year-round tourism while ensuring community participation and resilience.

India has entered into a USD 126.42 million loan agreement with the Asian Development Bank (ADB) to advance sustainable tourism and rural development in Uttarakhand's Tehri Lake region. The project focuses on Tehri Garhwal district, a region identified as both climate-vulnerable and economically disadvantaged. It aims to upgrade infrastructure, sanitation, waste management, and disaster preparedness, directly benefiting over 87,000 residents and supporting approximately 2.7 million visitors who come to the region annually.


The loan agreement was signed by Juhi Mukherjee, Joint Secretary at the Department of Economic Affairs, Ministry of Finance, and Kai Wei Yeo, Officer-in-Charge of ADB's India Resident Mission. Officials noted that the project is intended to strengthen local livelihoods, improve visitor facilities, and enhance the area's climate resilience.

The project will focus on building climate-resilient infrastructure and implementing nature-based solutions to reduce the risks of floods and landslides, which have recently affected the region. It also includes a livelihood matching grant program to support tourism initiatives led by women, youth, and micro, small, and medium-sized enterprises. Tourism facilities will be designed with universal access in mind to accommodate persons with disabilities, and pilot villages will feature women-led disaster risk management initiatives.

This initiative aligns with the Uttarakhand government's policy of promoting the state as a diversified, all-season tourist destination, with Tehri Lake identified as a priority area for development. The program is a response to recent cloudbursts and flash floods in the state, highlighting the need for better disaster preparedness and resilient infrastructure.

The initiative is expected to create employment opportunities, improve local tourism services, and strengthen community participation in environmental conservation and tourism development. By combining infrastructure improvements with livelihood support, the project seeks to ensure both economic and environmental sustainability in the Tehri Lake region.

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