Centre secures $126.4 million ADB loan to boost sustainable tourism in Uttarakhand

New Delhi, Sep 11 The Asian Development Bank (ADB) and the government of India have signed a $126.42 million loan agreement to promote rural development through sustainable and climate-resilient tourism in the Tehri Lake region of Uttarakhand, according to a Finance Ministry statement issued on Thursday.

The ADB loan supports Uttarakhand’s policy to position the state as a diversified, all-weather tourism destination, with Tehri Lake identified as a priority area for development, the official statement said.

The project targets the Tehri Garhwal district, one of Uttarakhand’s most climate-vulnerable and economically disadvantaged regions. It aims to benefit over 87,000 residents and 2.7 million annual visitors through improved tourism planning, upgraded infrastructure, enhanced sanitation and waste management, and disaster preparedness.

The signatories to the 'Sustainable, Inclusive, and Climate-Resilient Tourism Development' at Tehri Lake Area Project were Juhi Mukherjee, Joint Secretary, Ministry of Finance, and Kai Wei Yeo, Officer-in-Charge, India Resident Mission, 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,” said Mukherjee after signing the loan agreement.

“The project showcases a model for sustainable tourism anchored around a hydropower lake by adopting a multisector approach to generate jobs, diversify income, and build climate resilience,” Yeo added.

Key interventions include institutional strengthening, climate-resilient infrastructure, nature-based solutions to mitigate landslides and flood risks and inclusive tourism services led by women, youth, and the private sector.

Notable features include a livelihood matching grant programme 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 project will build upon previous ADB support for tourism in Uttarakhand and other regions of the country. The project area is based around a large, operational hydropower lake, and the project will also contribute to growing international experience on developing rural tourism in coordination with land and water zoning for hydropower generation.

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