Govt, ADB ink $126 million loan agreement to boost sustainable tourism in Uttarakhand

The Government of India and the Asian Development Bank (ADB) have signed a $126.4 million loan agreement to promote sustainable and climate-resilient tourism in Uttarakhand’s Tehri Lake region, the finance ministry said on Thursday.

The agreement, signed on Wednesday, seeks to foster rural development and strengthen tourism infrastructure in Tehri Garhwal district, one of the state’s most climate-vulnerable and economically disadvantaged regions.

The pact was signed by Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and Kai Wei Yeo, Officer-in-Charge, India Resident Mission, on behalf of ADB.

“The ADB loan supports the Government of Uttarakhand’s policy to position the state as a diversified, all-weather tourism destination, with Tehri Lake identified as a priority area for development,” Mukherjee said after the signing.

Yeo said the project aims to serve as a model for sustainable tourism anchored around a hydropower lake by adopting a multisector approach.

It will generate jobs, diversify income, and build climate resilience, he noted.

According to the ministry, the project is expected to benefit more than 87,000 residents and 2.7 million annual visitors through improved tourism planning, upgraded infrastructure, enhanced sanitation and waste management, and better disaster preparedness.

The initiative will include climate-resilient infrastructure, nature-based solutions to reduce landslide and flood risks, and inclusive tourism services led by women, youth, and the private sector.

“Notable features include a livelihood matching grant program to support tourism led by women, youth, and micro, small and medium-sized enterprises, universal access design including for persons with disability, and a women-led disaster risk management initiative in pilot villages,” the ministry said.