India, ADB Sign $126.4M Deal for Uttarakhand Tourism

In a major push for sustainable tourism and rural development, the Government of India and the Asian Development Bank (ADB) signed a $126.42 million loan agreement on 10 September 2025. The funds will support the Sustainable, Inclusive, and Climate-Resilient Tourism Development at Tehri Lake Area Project in Tehri Garhwal district, Uttarakhand.

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

Focus on Tehri Garhwal: A Vulnerable Yet Promising Region

The Tehri Lake region in Tehri Garhwal district—a region marked by economic underdevelopment and high climate vulnerability—has been identified as a priority development zone. The project aims to make Tehri an all-weather tourism destination while ensuring economic inclusion, environmental sustainability, and climate resilience.

Who Will Benefit?

The project is set to benefit,

• Over 87,000 local residents
• Approximately 2.7 million annual visitors
• Through strategic interventions, the initiative seeks to generate jobs, diversify rural incomes, and strengthen local capacities to respond to climate and disaster risks.

Key Interventions and Features

The project adopts a multisectoral, inclusive approach. Major interventions include,

• Upgraded tourism infrastructure: eco-parks, trails, viewpoints, rest areas
• Sanitation and waste management: modern systems for tourists and locals
• Climate-resilient infrastructure: built to withstand floods, landslides, and other disasters
• Institutional strengthening: improving local governance and planning capacity
• Nature-based solutions: measures to reduce landslide and flood risks using green buffers and catchment restoration

Crucially, the project includes universal access features for persons with disabilities, ensuring inclusivity.

Promoting Inclusive and Community-Led Tourism

To ensure broad-based participation, the project integrates,

• Women-led disaster risk management initiatives in selected pilot villages
• Livelihood matching grants for women, youth, and MSMEs to launch tourism ventures
• Private sector participation to enhance service quality and employment
• By doing so, it aims to shift from seasonal tourism dependency to a sustainable and diversified tourism economy.

Aligning with National and Global Goals

This project aligns with multiple policy priorities,

• Digital India and Swachh Bharat missions: through smart sanitation and clean public spaces
• National Tourism Policy 2022: which emphasizes sustainable, inclusive, and resilient tourism
• India’s climate goals under the Paris Agreement: by integrating low-carbon infrastructure and disaster resilience

What to Remember

• Agreement Signed: 10 September 2025
• Parties Involved: Government of India and ADB
• Loan Amount: $126.42 million
• Project Focus: Tehri Lake area, Tehri Garhwal district, Uttarakhand
• Target Beneficiaries: 87,000 residents, 2.7 million tourists