Union Minister L Murugan on Sunday (25 December) said that the government had already invested Rs 30,000 crore in the last eight years in the Andaman and Nicobar Islands (ANI), and Rs 10,000 crore of investments are in the pipeline.

The government is planning to develop a trans-shipment hub, a greenfield airport, a township and a diesel/solar power plant as part of a mega infrastructure boost to the strategically located island chain.

"This will not only generate a lot of employment opportunities for the local youths, but will also boost the local economy," he said at a press conference.

The Environment Ministry had previously approved projects worth Rs 75,000 crore (close to 10 billion USD), spread over 16,610 hectares on the Nicobar Islands.

The ANI is a group of over 500 islands located close to the Strait of Malacca, a narrow waterway considered one of the most crucial 'chokepoints' of global trade.

The proposed hub is being built at the Campbell Bay at Great Nicobar, the largest islands in the Nicobar group. The project will also boost India's shipping industry and maritime trade.

Currently over 80 per cent of India's transshipment cargo uses facilities at ports in Singapore, Colombo and Malaysia, leading to an estimated loss of Rs 15 billion annually.

The project will thus not only boost Atmanirbharta but also enable India to get a chunk of the regional and global transshipment business. The port would also have great natural depth, which would allow large ships to dock there.