A credit agreement for this project was signed between the union and state governments with the World Bank Wednesday in New Delhi.
The World Bank claims Himachal has become the first state in the country to get this ambitious project.
World Bank country director Onno Ruhl said the main objective is to support Himachal towards an environmentally sustainable model of economic growth by promoting improved management of its natural resources and inclusive green growth.
Today Himachal is one of the country’s main sources of clean energy, generating hydropower that can help alleviate electricity shortages in much of north India.
The forests of the hill state also act as an important carbon sink and are known to be global biodiversity hotspots.
“Himachal is keen to ensure that its four key sectors of energy, watershed management, industry and tourism adopt more environmentally sustainable and socially inclusive practices,” said Ruhl.
“We hope that the DPL II, which builds on our decade-long multi-sector engagement in the state will help Himachal demonstrate a more sustainable path to economic development for all hill states,”she said.