NEW DELHI, Sept. 11 -- India has signed a $126.42 million loan agreement with the Asian Development Bank (ADB) to promote sustainable tourism and rural development in Uttarakhand's Tehri Garhwal district, one of the Himalayan state's most climate-vulnerable and economically disadvantaged regions, the finance ministry said on Thursday.

The project, focused on the Tehri Lake area, is expected to benefit more than 87,000 local residents and 2.7 million annual visitors. It will upgrade infrastructure, improve sanitation and waste management, and strengthen disaster preparedness in a region prone to landslides and floods.

"Notable features include a livelihood matching grant programme to support tourism led by women, youth, and micro, small,...