The Great Nicobar Island Project

About

The Great Nicobar Island Project, officially known as the "Holistic Development of Great Nicobar Island," is a flagship infrastructure initiative by the Indian government aimed at transforming the remote southernmost island of the Andaman and Nicobar archipelago into a strategic hub for maritime trade, tourism, and defense. Conceived by NITI Aayog and executed by the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO), the project spans 166.10 sq km across seven revenue villages and is estimated to cost ?72,000-?92,000 crore (approximately USD 8.5-11 billion) over 30 years. It aligns with India's Maritime India Vision 2030 and SAGAR (Security and Growth for All in the Region) policy, leveraging the island's proximity to the Malacca Strait-a critical chokepoint for 40% of global trade-to position India as a key player in the Indo-Pacific.

The project was first proposed in the 1970s but gained momentum under the Modi government in 2021, with environmental clearance granted by the Ministry of Environment, Forest and Climate Change (MoEFCC) in November 2022. It includes phased development: Phase 1 focuses on core infrastructure like the port and airport, targeted for commissioning by 2028. As of September 2025, construction is advancing despite legal and political challenges, with the transshipment port notified as a major port in August 2025 and monitoring committees active since early 2025.

Key Components

The project encompasses multiple interconnected elements designed to boost connectivity, economy, and security:

Component

Description

Estimated Cost (Phase 1)

Strategic Role

International Container Transshipment Terminal (ICTT)

Deep-sea port at Galathea Bay with capacity for 16 million TEUs annually (4 million in Phase 1). Includes breakwaters, dredging, reclamation, berths, and storage.

?18,000 crore

Reduces reliance on foreign ports (e.g., Singapore, Colombo); handles 40% of India's transshipment cargo.

Greenfield International Airport

Dual-use (civil-military) airport near Campbell Bay, expanding the existing INS Baaz naval airstrip. Connects to Port Blair and Car Nicobar.

Included in overall ?41,000 crore for port-airport combo

Enhances air connectivity for trade, tourism, and defense; supports Humanitarian Assistance and Disaster Relief (HADR).

Township Development

16,569-hectare residential and commercial township for up to 65,000 residents (including migrants and workers), with entertainment zones, shopping complexes, and eco-tourism hubs.

Part of total project

Population boost from current ~10,000 to over 350,000; creates jobs in services and industry.

Power Plant

450 MVA gas and solar-based facility, including a 5 MW solar project with battery storage (bids invited in April 2025).

Included in total

Ensures energy self-sufficiency; supports green energy goals.

Other Infrastructure

Luxury tourism resorts, industrial hub, and deep-sea mining (7 blocks awarded in 2025). Enhancements to naval base under Andaman and Nicobar Command.

N/A

Eco-tourism and resource extraction for economic diversification.

The project excludes sensitive areas like Galathea National Park and Campbell Bay National Park, focusing on non-ecologically fragile zones as per a 2024 reassessment by the National Centre for Sustainable Coastal Management (NCSCM).

Strategic and Economic Importance

Great Nicobar's location-150 nautical miles from Indonesia and 145 km north of Indira Point (India's southernmost point)-makes it geopolitically vital. It overlooks the Six Degree and Ninety Degree Channels, key sea lanes for Indo-Pacific trade, and counters China's "String of Pearls" strategy by challenging Beijing's influence in the Indian Ocean. The port will allow India to capture transshipment traffic currently dominated by foreign hubs, potentially saving billions in logistics costs and generating revenue through fees and jobs (estimated 50,000+ direct employments).

Economically, it aligns with India's goal to become a $5 trillion economy by enhancing maritime capabilities. The island's development could attract FDI, boost tourism (currently minimal, with only one restaurant listed on TripAdvisor), and support offshore mining via the Offshore Areas Mineral Trust. In 2025, the project was highlighted by Union Minister Bhupender Yadav as a model of "economy and ecology together," with PMO India emphasizing its role in national security. As of September 12, 2025, BJP leaders like Sambit Patra and Anil K Antony have defended it on X as essential for power projection near the Malacca Strait.

Environmental and Social Concerns

Despite its ambitions, the project has faced intense scrutiny for its potential to devastate one of the world's last biodiversity hotspots in the Sundaland region, a UNESCO-recognized biosphere reserve. Critics, including environmentalists, scientists, and indigenous groups, argue it violates laws like the Forest (Conservation) Act, 1980; Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA); and Coastal Regulation Zone (CRZ) Notification, 2011.

Key Concerns:

  • Biodiversity Loss: Up to 8.5 lakh trees (potentially 32-58 lakh per independent estimates) will be felled, impacting endemic species like the Nicobar megapode bird, leatherback sea turtles (Galathea Bay is a prime nesting site), Nicobar macaque, and saltwater crocodiles. Dredging millions of cubic meters of seabed could destroy coral reefs, seagrass beds, and habitats for 15 dolphin/whale species and hundreds of fish. The impact on flora and fauna is "mostly unknown," per the Environmental Impact Assessment (EIA).
  • Indigenous Communities: The Shompen (300 hunter-gatherers, a Particularly Vulnerable Tribal Group or PVTG) and Nicobarese (~1,000-1,761 members) face existential threats. The project affects 10% of their 166 sq km tribal reserve, with a 4,000% population influx risking cultural erosion, disease transmission, and displacement. The Tribal Council withdrew its No Objection Certificate (NOC) in November 2022, claiming no FRA rights were settled or consent obtained. A fraudulent August 2022 certificate alleging consent has been contested, with the Ministry of Tribal Affairs promising review in May 2025.
  • Seismic and Climate Risks: The island is in an active tectonic zone (2004 tsunami caused 15 ft subsidence; July 2025 earthquake of 6.2 magnitude). Construction in a high-risk area could exacerbate erosion and flooding, with limited freshwater and green power capacity questioning sustainability.
  • Legal and Procedural Issues: The National Green Tribunal (NGT) issued a stay in 2023 and formed a review committee, but the government claims no hurdles as of August 2025. Opposition alleges inadequate consultations, incomplete EIA data, and de-notification of the Galathea Bay Wildlife Sanctuary without buffer zones. In September 2025, a hearing is scheduled for September 13 on a review petition.

Monitoring committees for biodiversity, pollution, and tribal welfare were formed in 2023, with ?80 crore sanctioned in February 2025 and a first joint meeting in April 2024. Conservation plans (30-year horizon) are underway by institutes like the Wildlife Institute of India, costing ?9,162 crore overall. However, experts argue the project uses "incomplete, inaccurate data" and fails social, economic, and ecological sustainability tests.

Current Status and Future Outlook

As of September 12, 2025, the project is progressing: DPR for the port is finalized, EoIs from firms like Larsen & Toubro and JSW Infrastructure are in, and Phase 1 implementation is slated for the next few months. Deep-sea mining blocks were awarded in April 2025, and solar bids are ongoing. However, the NGT hearing on September 13 could impact timelines, and tribal objections remain unaddressed.

Proponents see it as India's "Hong Kong in the Bay of Bengal," catalyzing economic shifts by capturing transshipment and enhancing HADR. Detractors warn of irreversible damage, urging alternatives like Vizhinjam to avoid ecological catastrophe. The project's success hinges on robust mitigation, transparent consultations, and independent oversight to balance development with preservation.

 

 

 

-- Daily News Section Compiled

    By Vishwas Nimbalkar
 
 
 
Posted by on 12th Sep 2025