India and the Asian Development Bank (ADB) have signed a $126.42-million loan agreement to advance rural development through sustainable tourism in the Tehri Lake region of Uttarakhand.

The initiative aims to support over 87,000 local residents and 2.7 million annual visitors by enhancing tourism planning, upgrading infrastructure, improving sanitation and waste management, and strengthening disaster preparedness.

Focusing on Tehri Garhwal District, one of Uttarakhand’s most climate-vulnerable and economically disadvantaged areas, the project seeks to create a model for inclusive, resilient tourism.

Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, stated, “The ADB loan supports Uttarakhand’s policy to position the state as a diversified, all-weather tourism destination, with Tehri Lake as a priority area for development.”

Kai Wei Yeo, Officer-in-Charge, India Resident Mission, ADB, added, “The project showcases sustainable tourism anchored around a hydropower lake, adopting a multi-sector approach to generate jobs, diversify incomes, and build climate resilience.”