THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 11, 2026
The World Bank’s Board of Executive Directors
has approved a $245 million financing package to support Himachal Pradesh in
rebuilding climate-resilient infrastructure and strengthening livelihoods,
benefiting an estimated 2.3 million people across the state.
Himachal
Pradesh has faced repeated extreme weather events over the past three years,
causing losses estimated at nearly $1 billion. Heavy rainfall during the 2023
and 2025 monsoon seasons led to widespread destruction of homes and
infrastructure, loss of lives, and disruptions to schools, markets and
employment. Damage to water supply and sanitation systems also affected
agriculture and horticulture, which are key to the state’s economy.
The
Resilient Action for Development and Disaster Recovery Himachal Pradesh Project
aims to support post-disaster recovery while reducing the impact of future
climate shocks. The project will promote better planning, design and
construction of resilient infrastructure. It will also strengthen early warning
systems and disaster-risk management capacities.
More than
one million women are expected to benefit through improved access to essential
services and enhanced livelihood opportunities in farming, handicrafts and
rural tourism. Investments in community-owned enterprises will help create or
improve jobs for around 12,000 people and open new market linkages for
artisans, producers and farmers.
“Smart development that builds resilience and
creates jobs can help countries drive long-term growth even in the face of
extreme weather events,” said Paul Procee, Acting Country Director, World Bank
India. “By investing in sustainable infrastructure that connects people to
opportunities, this project will help Himachal Pradesh build back better. It
will also mobilize $100 million in private capital towards disaster-risk
financing and insurance solutions.”
The project will be implemented in partnership with Agence Française de Développement and will draw on global expertise from the Coalition for Disaster Resilient Infrastructure. Key components include rehabilitation of more than 250 bridges, roads and footbridges, benefiting over one million residents, and restoration of transport, energy, water and sanitation systems with enhanced resilience standards.
With a final maturity of 16 years, including a grace period of 3.5 years, the project is designed to support both immediate recovery and long-term climate resilience in Himachal Pradesh.
