New Delhi: The World Bank has cleared a USD245 million financing package to support disaster recovery and climate-resilient development in Himachal Pradesh. The programme will directly benefit nearly 2.3 million people across the State and help rebuild critical infrastructure damaged by extreme weather events.
The financing carries a maturity period of 16 years, including a grace period of three and a half years.
Himachal Pradesh has faced repeated climate shocks in recent years. Intense rainfall during the 2023 and 2025 monsoon seasons caused widespread destruction. The disasters led to loss of lives and damage to homes, roads, and public utilities.
Authorities estimate economic losses at around USD1 billion. Water supply, sanitation networks, and farm output also suffered setbacks.
The initiative, titled Resilient Action for Development and Disaster Recovery Himachal Pradesh Project, will strengthen infrastructure planning and promote climate-resilient construction.
The State will rebuild bridges, roads, and public facilities using improved design standards. Officials expect these upgrades to reduce future risks and improve access to schools, markets, and workplaces.
The project places a strong focus on livelihoods. More than one million women will gain better access to services and income opportunities, the Bank said in a release. The plan supports farming, handicrafts, and rural tourism. It will also fund community-owned enterprises to create or improve around 12,000 jobs. These investments aim to expand market access for artisans, producers, and farmers.
Paul Procee, Acting Country Director of the World Bank in India, said resilient development can drive long-term growth despite climate challenges. He noted that the programme will help the state rebuild stronger infrastructure while mobilising USD100 million in private capital for disaster-risk financing and insurance solutions.
The World Bank will implement the programme in partnership with Agence Française de Développement. The collaboration will strengthen early warning systems and disaster preparedness. The Coalition for Disaster Resilient Infrastructure will provide technical knowledge for sustainable rebuilding, including the restoration of more than 250 bridges, roads, and footbridges. These improvements will serve over one million residents.
