Positioned by the Centre as a vital pillar to secure India’s strategic interests in the Indian Ocean Region and a geopolitical necessity, the Great Nicobar Island project continues to draw intense scrutiny.
The government seeks to transform the island into a strategic maritime and economic hub by reducing dependence on foreign transshipment ports. Critics, however, point to its likely impact on ecology and the displacement of indigenous communities for a commercial venture whose long-term profitability remains unproven.
About the project
The proposed project envisages an International Container Transshipment Terminal (ICTT), a greenfield international airport and a new township spanning 16,610 hectares. The project will be implemented in three phases. It covers a total area of 166.10 sq km, which includes 35.35 sq km of revenue land and 130.75 sq km of forest land.
Strategic significance
The government states that India’s ports lack deep water berths for large ships, which results in the routing of cargo through Colombo and Singapore. India loses substantial revenue as a result. Countries like Myanmar, China and Sri Lanka are already building deep water facilities to capture this trade.
The port, it stresses, is strategically important as it gives an advantage to attract both gateway and transshipment cargo, reducing India’s dependence on foreign ports like Colombo, Singapore and Klang. It will also substantially strengthen India’s presence in the Andaman Sea and Southeast Asia, enhance maritime and defence capabilities, and integrate the island with global trade and logistics networks.
According to the Centre, a strong and permanent defence presence in Great Nicobar will enable India to effectively monitor and secure maritime routes and counter the growing presence of foreign powers in the Indian Ocean.
The proposal states that an international airport is necessary to improve connectivity and open up the island to tourism. The island is close to international tourist destinations like Senang city, Phuket island and Langkawi.
Mounting concerns
Critics say the project endangers marine species in areas classified under the Coastal Regulation Zone-1A, where construction activities are restricted. They have also alleged procedural lapses in the grant of forest clearances. The region is also classified under Seismic Zone V — the highest earthquake risk category, which has further added to concerns about infrastructure safety. Over a million trees will be felled for the project, it is claimed.
In 2021, the Galathea Bay wildlife sanctuary and a megapode wildlife sanctuary were denotified for the project.
However, the government states that only 1.82 per cent of the total forest cover of the Andaman and Nicobar Islands will be diverted. It has also emphasised that 65.99 sq km will be preserved as green zones with no tree felling.
Currently, Great Nicobar Island has 751.070 sq km of land officially marked as Tribal Reserve. Out of the 166.10 sq km that is proposed for development projects, 84.10 sq km overlaps with the Tribal Reserve. However, within this portion, 11.032 sq km has already been settled and used as revenue land since 1972. Consequently, the effectively remaining area measuring 73.07 sq km is being de-notified for project purposes. To compensate, 76.98 sq km is being re-notified as Tribal Reserve, resulting in a net addition of 3.912 sq km to the Tribal Reserve, the government states.
The Nicobarese community on the island has written to the Centre and the National Commission of Scheduled Tribes on multiple occasions, pointing out that it had revoked their no-objection certificate for the denotification of the Tribal Reserve community. They have also alleged that their rights under the Forest Rights Act were not settled.
Clearances given
The project secured Stage-1 clearance in 2022. In February this year, the National Green Tribunal declined to interfere with the environmental clearance granted to the project. The tribunal noted that no part of the project fell within the ecologically sensitive Coastal Regulation Zone-1A after ground verification by a high-powered committee.
The proposed International Container Transshipment Port (ICTP) at Galathea Bay has secured an in-principle recommendation from the Public Private Partnership Appraisal Committee (PPPAE), moving it closer to administrative approval despite concerns about the commercial viability of the Rs 48,862-crore project raised by multiple government wings.
During discussions on March 17 and 19, the committee noted questions regarding the project’s eligibility for viability gap funding (VGF) and its competitiveness against established transshipment hubs like Colombo, Singapore, and Port Klang.
The Ministry of Ports, Shipping and Waterways had sought Rs 12,230 crore — 25 per cent of the total project cost — as VGF for constructing the port. Since the project is not structured in accordance with the VGF scheme of the Department of Economic Affairs, it is not eligible for VGF support. It was decided by the committee that the ministry may consider providing VGF support through its own budgetary provisions.
