Economy
Amit Mishra
Nov 21, 2024, 03:32 PM | Updated 03:50 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Nestled over a thousand kilometres off India’s eastern coast, the Andaman and Nicobar Islands often remain out of sight and mind for most.
But the tides are turning! The biodiversity-rich archipelago, once overshadowed by the mainland, is now front and centre in the Central government’s bold modernisation push.
History was made this Sunday as AirAsia’s inaugural international flight from Kuala Lumpur touched down at Veer Savarkar International Airport in Sri Vijaya Puram (Port Blair)—ending a 22-year-long wait for international air connectivity.
The airport’s state-of-the-art terminal, which opened on 18 July 2023, boasts a striking sea-shell-inspired design and a capacity to handle 5 million passengers annually.
Renamed in 2002 to honour the revered freedom fighter Vinayak Damodar Savarkar—who endured incarceration in the infamous Port Blair’s Cellular Jail during India’s fight for independence—the airport stands as both a gateway and a tribute to history.
But That’s Just the Beginning
In March 2021, NITI Aayog unveiled a Rs 72,000-crore mega project for the “holistic development” of Great Nicobar Island (GNI), situated at the southern end of the Andaman and Nicobar group of Islands.
At the heart of this massive plan lies a Rs 35,000-crore trans-shipment port at Galathea Bay—a critical nesting site for leatherback turtles.
Complementing this centrepiece are a dual-purpose military-civil international airport, a power plant, and a sprawling greenfield township spread over more than 130 sq km of pristine forest.
With high stakes, high investment, and equally high scrutiny, the project is spearheaded by a government undertaking called the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO).
The Controversial Kid
The idea of a strategic port on Great Nicobar Island has been bubbling since the 1970s—when the Trade Development Authority of India (now India Trade Promotion Organisation) first explored the concept through techno-economic studies.
The goal? A strategic port near the Malacca Strait, one of the world’s busiest maritime chokepoints, designed to boost India’s presence in global maritime trade.
Fast-forward to today: The Narendra Modi government has officially designated the international transhipment hub at Galathea Bay as a 'major port.'
Great Nicobar Island, located just 90 km from the western tip of the Malacca Strait, is a prime location. Its proximity to key countries like Indonesia, Myanmar, and Thailand makes it the perfect strategic gateway for trade, giving India an edge.
This ambitious port will be developed in four phases. Phase 1 is set for completion by 2028, offering a handling capacity of 4 million TEUs (Twenty-Foot Equivalent Units). A TEU is a unit expressing cargo capacity. By 2058, it’s expected to handle 16 million TEUs—unlocking massive transhipment potential for India.
A Special Purpose Vehicle (SPV) has been set up, bringing together four major ports: Jawaharlal Nehru Port, Deendayal Port, Paradip Port, and V.O. Chidambaranar Port to lead the construction of this ambitious project.
A New Frontier in Tuna Exports
The centre has set its sights on transforming the Andaman and Nicobar Islands into a tuna export hub.
According to a concept note by the Union Fisheries Department, the island's Exclusive Economic Zone is teeming with untapped fishery riches, including multiple tuna species such as yellowfin, skipjack, bigeye, and neritic.
With an estimated yield of 64,500 tonnes annually, the islands are perfectly positioned to tap into the $41.94 billion global tuna market.
Sitting in the heart of the Indian Ocean, they have a front-row seat to 21 per cent of the world’s tuna supply.
Why It Matters
For years, tourism has been the lifeblood of the Andaman and Nicobar economy, but its true potential extends beyond just the natural allure.
Government policies, hitherto focused on preservation through strict environmental regulations, have allowed only 9 out of nearly 600 islands to open to foreign tourists, keeping broader growth at bay—until now.
The Andamans hold immense promise in sectors like maritime trade, shipping, fisheries, undersea mining, and oil and gas exploration.
With a sprawling 1,912 km coastline and accounting for 30 per cent of India’s Exclusive Economic Zone (EEZ) despite comprising just 0.2 per cent of the country's landmass, this archipelago is a strategic asset that could transform India’s maritime presence.
Blocks To Development
As the ambitious development project for Great Nicobar Island gains momentum, ecological concerns are also rising fast, threatening to bring many projects to a halt.
Activists, conservationists, and social scientists have raised alarms over the potential impact on both people and nature—specifically the indigenous Shompen and Nicobarese tribes and the island’s fragile ecosystems.
The controversy has sparked a fierce political battle, with the Indian National Congress leading the charge against the project, saying it could have “catastrophic ecological and human consequences.”
In a post on X dated 8 August, Congress MP Jairam Ramesh raised three major concerns about the Great Nicobar Island project—the destruction of a unique rainforest ecosystem through the diversion of 13,075 hectares of forest land, the potential genocide of the Shompen tribe due to violations of legal safeguards, and the project’s location in an earthquake-prone zone, which risks severe consequences for investment, infrastructure, and the environment.
In response, the centre has staunchly defended the project, asserting that all environmental regulations have been meticulously followed.
What Lies ahead
While NITI Aayog has likely conducted due diligence and feasibility studies before embarking on its ambitious project, certain pressing issues must be re-evaluated—especially in light of the ongoing protests.
The government’s vision of transforming the Andaman and Nicobar Islands into a crucial maritime node in the Indo-Pacific is rooted in the goal of making these islands self-sustaining and prosperous.
However, this transformation must prioritise green clearances and ensure that the indigenous people’s free, prior, and informed consent is obtained for any industrial development.
As former Chief of Naval Staff, Arun Prakash, suggests, the government could explore other areas within the Andaman archipelago for its plans.
The Nicobar group, home to islands like Little Nicobar, Nancowry, Kamorta, and Katchall, could host much of the project’s components without risking irreparable ecological, environmental, or anthropological damage, says Arun Prakash.
These archipelagos are not just clusters of islands; they are home to people with legitimate rights over the land and surrounding seas. Development need not come at an irreparable cost, but it cannot be delayed indefinitely either.