The Asian Development Bank (ADB) and the union government have signed a loan agreement worth $126.42 million to support sustainable and climate-friendly tourism in Uttarakhand. This project is designed to develop the Tehri Lake region as a major tourism destination while also bringing benefits to local people and protecting the environment.
The agreement was signed in New Delhi, and officials from the finance ministry confirmed that the project will help the Uttarakhand government’s plan to make the state an all-weather, diversified tourist hub.
Tehri Lake, located in Tehri Garhwal district, has been identified as a priority area for this project. The district is known for its scenic beauty but is also one of the most climate-vulnerable and economically weak regions of Uttarakhand. By choosing Tehri as the main focus, the project aims to improve the lives of local people while also attracting more visitors.
According to the government, the project is expected to benefit around 87,000 residents living in the region. It is also planned to serve about 2.7 million tourists who visit every year. The project will work on upgrading infrastructure, improving sanitation facilities, better waste management, and preparing for natural disasters like floods and landslides.
ADB’s officer-in-charge for India, Kai Wei Yeo, said that this project is a good example of how sustainable tourism can be developed around a hydropower lake. It will take a multisector approach, meaning it will create jobs, bring new income opportunities, and make the local economy stronger and safer against climate risks.
The project is not only about building tourism infrastructure. It also focuses on creating direct benefits for local communities. One of its important features is a livelihood matching grant programme, which will support tourism-related businesses led by women, youth, and small enterprises. This means that local people will get help in starting or expanding businesses connected to tourism, such as homestays, handicrafts, local food services, and eco-tourism activities.
The project also promises to make tourism services more inclusive. This includes ensuring universal access design, which means facilities will be made friendly for everyone, including persons with disabilities. In addition, there will be a women-led disaster risk management initiative in pilot villages. This step will give women a stronger role in community safety and disaster response, making villages more resilient.
Officials said that climate-resilient infrastructure will be a key part of the plan. Nature-based solutions will be used to reduce risks from floods and landslides. For example, better drainage systems, improved road structures, and eco-friendly building designs will help reduce the damage from extreme weather.
The ADB loan supports the broader policy of the Uttarakhand government to position the state as an all-season tourism hub. Currently, tourism in Uttarakhand is often seasonal, with high numbers during summer or pilgrimage seasons but low numbers at other times. By promoting Tehri Lake as a destination for water sports, eco-tourism, cultural experiences, and wellness activities, the government hopes to attract visitors throughout the year.
The project is also expected to reduce migration from the hills by creating local jobs and business opportunities. Many people from Tehri Garhwal and surrounding areas move to cities in search of work. By developing tourism-related employment, the project can give people reasons to stay and grow their livelihoods locally.
One of the strongest features of the project is its focus on sustainability. Instead of just building hotels and roads, the plan includes eco-friendly tourism that protects the lake and nearby forests. Improved waste management and sanitation will ensure that rising tourist numbers do not harm the environment.
There will also be special efforts to prepare the region for natural disasters. Since Uttarakhand is a state often affected by floods, landslides, and earthquakes, disaster preparedness is a big part of the project. Training local communities, building strong infrastructure, and involving women in safety planning will all help reduce risks.
ADB officials said that this project could be a model for other states in India, showing how tourism can be developed in a way that benefits people and protects nature at the same time.
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Tourism is one of the biggest contributors to Uttarakhand’s economy. With its mountains, lakes, rivers, and spiritual centres, the state attracts millions of visitors every year. However, lack of proper infrastructure and high disaster risks often limit growth. This project is expected to change that by providing world-class facilities, better connectivity, and safer experiences for tourists.
The $126.42 million loan will not only improve tourism but also help the state strengthen its economic base in a sustainable way. By focusing on women, youth, and small businesses, the project will spread benefits widely across society.
In the long run, this initiative may help Uttarakhand become known not just for religious and adventure tourism but also for eco-friendly and community-based experiences. The success of this project could inspire similar models in other states with rich natural resources and tourism potential.
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