Govt. and ADB Signed $ 126.42 Million Loan to Transform Tehri Lake into a Model for Sustainable Rural Tourism

The Asian Development Bank (ADB) and the Government of India on September 11, 2025 signed a $ 126.42 million loan agreement to promote rural development via sustainable and climate resilient tourism in the Tehri Lake region of Uttarakhand.

Ms. Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance for the Government of India and Mr. Kai Wei Yeo, Officer in charge were the signatories to the Sustainable, Inclusive and Climate Resilient Tourism Development of Tehri Lake Area project.

Ms. Mukherjee after signing the loan agreement said, The ADB loan support 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.

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

The project focuses the Tehri Garhwal District, one of Uttarakhand’s most climate-vulnerable and economically disadvantage regions. The objective of this is to benefit over 87,000 residents and  2.7 million annual visitors through enhanced tourism planning, upgraded infrastructure, boosts sanitation and waste management and disaster preparedness.

Key measures feature institutional strengthening, climate-resilient infrastructure, and nature-based solutions to reduce landslide and flood risks. The project will also promote inclusivity through initiatives such as a livelihood grant program for women, youth, and MSMEs, universal-access facilities for persons with disabilities, and a women-led disaster risk management initiative in pilot villages.