India and Asian Development Bank (ADB) have signed a USD 126.42 million financing agreement to promote rural development through sustainable tourism in Uttarakhand’s Tehri Lake region.

The initiative will directly benefit over 87,000 residents and enhance the experience of 2.7 million annual visitors through improved tourism planning, better infrastructure, enhanced sanitation and waste management, and stronger disaster preparedness measures. Targeting Tehri Garhwal District—among the most climate-vulnerable and economically disadvantaged regions of Uttarakhand, the project aligns with the state’s policy of positioning itself as a diversified, allweather tourism destination. Tehri Lake has been identified as a key development zone.

According to the Ministry of Finance, the loan will support inclusive tourism services led by women, youth, and the private sector. ADB highlighted that the project is designed as a model for sustainable tourism around a hydropower lake, using a multi-sector approach to generate employment, diversify incomes, and build climate resilience through climate-resilient infrastructure and nature-based disaster mitigation solutions.