21 September, 2025
Tehri Lake Tourism Project: $126.42 Million Loan Agreement Between Government of India and ADB
Sat 13 Sep, 2025
Context:
- The Government of India and the Asian Development Bank (ADB) signed a loan agreement worth USD 126.42 million to promote sustainable and climate-resilient tourism in the Tehri Lake region of Uttarakhand.
Key Points:
- Signatories: Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Kai Wei Yeo, Officer-in-Charge, ADB India.
- The project will be implemented under “Sustainable, Inclusive and Climate-Resilient Tourism Development at Tehri Lake Area Project.”
- Implementing Partner: Government of Uttarakhand.
Project Objectives:
- Sustainable Tourism Development: To develop Tehri Lake as a year-round tourist destination with priority on environmental sustainability and climate adaptability.
- Rural Development: Create employment and diversify income in the economically backward Tehri Garhwal district.
- Climate Resilience: Establish climate-resilient infrastructure and nature-based solutions to address risks such as floods and landslides.
- Inclusive Growth: Encourage participation of women, youth, and MSMEs in tourism services.
Major Interventions and Features
Tourism Infrastructure Upgradation:
- Development of eco-parks, trails, viewpoints, and rest areas.
- Safe and modern tourist facilities such as improved roads and traffic systems.
- Ensure universal accessibility for differently-abled persons.
Sanitation and Waste Management:
- Installation of modern sanitation facilities and waste management systems.
- Focus on energy efficiency and water management for environmental protection.
Climate-Resilient Infrastructure:
- Nature-based solutions like green buffers and restoration of catchment areas to reduce flood and landslide risks.
- Construction of resilient infrastructure to withstand natural disasters.
Institutional Strengthening:
- Improve capacity in local governance and tourism planning.
- Community-led initiatives in disaster management and tourism services, particularly by women and youth.
Livelihood Support:
- Livelihood matching grant program for women, youth, and MSMEs.
- Promotion of local handicrafts and businesses.
Beneficiaries:
- Local Residents: More than 87,000 local residents to benefit, especially through job opportunities and improved infrastructure.
- Tourists: Around 2.7 million annual visitors will enjoy better facilities, sanitation, and safer tourism experiences.
- Local Economy: Tourism income will strengthen local businesses and handicraft industries.
Tehri Lake (Tehri Dam Reservoir)
- Tehri Lake, located in Tehri Garhwal district of Uttarakhand, is one of the largest man-made lakes in India.
- It was formed by the construction of the Tehri Dam at the confluence of the Bhagirathi and Bhilangna rivers.
- The lake is not only important for hydropower generation but also famous for its natural beauty and tourism potential.
Location and Construction:
- Location: Tehri Garhwal, Uttarakhand, India.
- Construction: Under Tehri Dam Project, initiated in 1978 and substantially completed in 2006.
- Rivers: Built at the confluence of Bhagirathi and Bhilangna rivers.
- Dam Height: About 260.5 meters (one of the highest dams in the world).
- Lake Area: About 52 sq. km (varies with water level).
- Reservoir Capacity: Around 4.0 cubic km (approx. 4000 MCM).
Purpose:
- Hydropower Generation: Installed capacity of 1000 MW.
- Irrigation: Provides water for agricultural fields in surrounding areas.
- Drinking Water Supply: Supplies water to parts of Delhi and Uttar Pradesh.
- Tourism: Emerging as a hub for natural beauty and water sports.
Tourism Significance:
- Natural Beauty: Surrounded by Himalayan ranges, offering scenic landscapes.
- Water Sports: Boating, jet skiing, and kayaking facilities available.
- Attractions: Tehri Dam, New Tehri town, and nearby hill stations like Dhanaulti.
- Sustainable Tourism: Recently, the Government of India and ADB signed a $126.42 million loan agreement to develop Tehri Lake as a sustainable and climate-resilient tourism site (11 September 2025).
Environmental and Social Aspects:
- Rehabilitation: Thousands displaced due to submergence of old Tehri town and nearby villages were rehabilitated.
- Environmental Impact: Dam and lake affected local ecosystems; sustainable development initiatives are being taken.
- Climate Sensitivity: Area is prone to landslides and floods, requiring climate-resilient infrastructure.
Economic Importance:
- Employment: Jobs generated through tourism and hydropower projects.
- Local Economy: Boost to handicrafts, hotels, and small businesses.
- Visitors: Nearly 2.7 million tourists visit annually.
Connectivity:
- Nearest Town: New Tehri (16 km), Dehradun (85 km).
- Air: Jolly Grant Airport, Dehradun (90 km).
- Rail: Rishikesh Railway Station (76 km).
- Road: Well connected by road from Dehradun, Rishikesh, and Haridwar.
Asian Development Bank (ADB)
Details | Information |
Full Name | Asian Development Bank (ADB) |
Type | Multilateral Development Bank |
Established | 19 December 1966 |
Headquarters | Mandaluyong City, Metro Manila, Philippines |
Member Countries | 68 |
Current President | Masato Kanda (11th President) |
Governance System | Operated by Board of Governors representing member countries |
Functions | Provides loans, technical assistance, grants, guarantees, and equity investments |
Areas of Work | Promotes sustainable, inclusive, and resilient development in Asia and the Pacific |
India’s Status | Founding Member |
Role in India | Provides financial and technical support for multiple projects |