India Signs $126 Million Loan Pact With ADB To Boost Tourism In Uttarakhand

(MENAFN- Live Mint) NEW DELHI: India has signed a $126.42 million loan agreement with the Asian Development Bank (ADB) to promote sustainable tourism and rural development in Uttarakhand's Tehri Garhwal district, one of the Himalayan state's most climate-vulnerable and economically disadvantaged regions, the finance ministry said on Thursday.

The project, focused on the Tehri Lake area, is expected to benefit more than 87,000 local residents and 2.7 million annual visitors. It will upgrade infrastructure, improve sanitation and waste management, and strengthen disaster preparedness in a region prone to landslides and floods.

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“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 ministry added.

The project comes in the wake of flash floods and cloudbursts that battered Uttarakhand last month. Uttarkashi's Dharali village and Sukhi Top were among the worst hit, while Rudraprayag, Chamoli, Tehri Garhwal, Bageshwar, Pithoragarh, Pauri Garhwal, and Nainital faced landslides, road blockages, and overflowing rivers-highlighting the region's vulnerability to extreme weather.

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

According to the ministry, the project will deploy climate-resilient infrastructure and nature-based solutions to mitigate landslide and flood risks, while promoting inclusive tourism . Women, youth, and micro, small, and medium-sized enterprises will play a central role through the grant programme and women-led disaster risk management pilots.

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“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,” added ADB's Yeo.

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The ADB said the initiative will support sustainable tourism through planning, capacity building, and climate-resilient, inclusive facilities-helping post-pandemic recovery, rural income diversification, and environmental protection. By coordinating rural tourism development with land and water zoning for hydropower, the project will also contribute to international best practices in rural tourism planning.

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