India, ADB Sign $126 Million Loan for Climate-Resilient Tourism at Tehri Lake

The Government of India and the Asian Development Bank (ADB) signed a $126.42 million loan agreement to promote sustainable, inclusive, and climate-resilient tourism in the Tehri Lake region of Uttarakhand. The initiative seeks to balance ecological preservation with livelihood creation, positioning the region as a model for sustainable tourism anchored around a hydropower lake.

Agreement and Signatories

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

Speaking on the occasion, Ms. Mukherjee said the project supports the Government of Uttarakhand’s strategy to develop the state as a diversified, all-weather tourism destination, with Tehri Lake being a priority site. Mr. Yeo added that the initiative demonstrates how sustainable tourism can drive job creation, diversify income sources, and build climate resilience in vulnerable regions.

Focus on Tehri Garhwal District

The project targets Tehri Garhwal, one of Uttarakhand’s most climate-sensitive and economically disadvantaged districts. It aims to benefit more than 87,000 local residents and approximately 2.7 million annual visitors through:

• Improved tourism planning and management

• Upgraded sanitation and waste disposal facilities

• Climate-resilient infrastructure

• Disaster preparedness and risk reduction initiatives

Key Interventions and Features

The Sustainable, Inclusive, and Climate-Resilient Tourism Development Project at Tehri Lake introduces multiple innovative interventions:

• Institutional Strengthening: Enhancing local governance capacity for long-term tourism management.

• Climate-Resilient Infrastructure: Development of eco-friendly facilities and nature-based solutions to mitigate risks of landslides, floods, and extreme weather events.

• Inclusive Tourism Services: Special emphasis on women, youth, and private sector participation in service delivery.

• Livelihood Matching Grant Programme: Financial support for community-led tourism initiatives, particularly by women, youth, and micro, small, and medium enterprises (MSMEs).

• Universal Access Design: Ensuring infrastructure is accessible to persons with disabilities and the elderly.

• Women-Led Disaster Risk Management: Pilot initiatives in villages empowering women to take leadership roles in disaster preparedness and response.

Economic and Social Impact

By upgrading infrastructure and diversifying income opportunities, the project seeks to generate sustainable livelihoods, reduce outmigration, and strengthen the region’s appeal to domestic and international tourists. Tehri Lake, with its vast potential for eco-tourism and adventure sports, is expected to become a hub for year-round tourism, reducing seasonal dependency.

The initiative also integrates climate adaptation and environmental safeguards, making it one of the few projects in India to explicitly combine tourism promotion with disaster risk reduction and ecological sustainability.

Broader Significance

The project aligns with India’s national priorities on sustainable growth, community development, and climate resilience. It is also consistent with ADB’s broader vision of financing projects that not only create economic value but also protect natural ecosystems and empower vulnerable populations.

By linking green development with community-driven tourism, the Tehri Lake project is expected to emerge as a replicable model for other regions of India and beyond.