Great Nicobar Island Development Project

India’s maritime vision is undergoing a historic transformation through strategic infrastructure initiatives such as the Great Nicobar Island Development Project, announced as a cornerstone of the country’s long-term maritime policy. The Union Home Minister and Minister of Cooperation, Amit Shah, during the India Maritime Week 2025 in Mumbai, emphasised that the project will multiply India’s maritime trade several times, positioning the nation among the top five in global shipbuilding and tripling cargo handling capacity.
The project, valued at approximately US$5 billion (₹75,000–81,000 crore), is central to India’s efforts to emerge as a leading maritime and logistics power, leveraging its geographical advantage at the crossroads of the Indo-Pacific and the global South.

Background and Strategic Context

India’s maritime development vision aligns with the Maritime India Vision 2030, the Sagarmala Programme, and the Blue Economy Policy, all of which aim to enhance port infrastructure, boost trade, and strengthen coastal connectivity. The Great Nicobar Island, located at the southernmost tip of the Indian archipelago, in the Andaman and Nicobar Islands, offers an exceptional geostrategic location near the Malacca Strait, one of the world’s busiest sea lanes.
The Great Nicobar Island Development Project, conceptualised by NITI Aayog and implemented through the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDC), seeks to transform the island into an integrated maritime and economic hub. The project area covers 166.10 square kilometres, encompassing seven revenue villages across three gram panchayats.
The island holds immense significance for both commercial and defence purposes. It serves as a forward base for the Indian Navy through INS Baaz, part of the Andaman and Nicobar Command, the only tri-service command of the Indian Armed Forces.

Key Components of the Great Nicobar Project

The project comprises several major infrastructure components designed to establish the island as a global maritime centre:

• Galathea Bay International Container Transhipment Terminal (ICTT): Planned on the island’s eastern coast, the terminal will have a total capacity of 16 million TEUs, with Phase I handling up to 4 million TEUs by 2028. This will enable India to compete with global transhipment hubs like Singapore and Colombo.
• Great Nicobar International Airport (GNIA): A greenfield airport near Galathea Bay with an estimated peak-hour capacity of 4,000 passengers, intended to boost tourism and trade connectivity.
• Great Nicobar Gas and Solar Power Plant (GSPP): A 450 MVA capacity power facility combining natural gas and solar energy sources to ensure sustainable energy for the island’s industrial and residential needs.
• Two New Greenfield Coastal Cities: Planned as smart coastal settlements, these urban centres will support logistics, eco-tourism, and maritime services on the island’s southeast and southwest sides.
• Luxury Tourism and Industrial Hubs: To attract international visitors and investors, the project also envisages cruise terminals, resort zones, and industrial corridors aligned with sustainable tourism principles.

Economic and Geostrategic Significance

The Great Nicobar Island project holds multidimensional importance for India’s economy, trade, and national security. The transhipment terminal at Galathea Bay is expected to reduce dependency on foreign ports for cargo handling, thereby saving billions in foreign exchange annually.
In addition to economic benefits, the island’s location near the Malacca Strait provides strategic oversight of a vital maritime chokepoint through which nearly 40 per cent of global trade passes. The project reinforces India’s maritime capabilities in the Indo-Pacific region, complementing initiatives such as the Quadrilateral Security Dialogue (Quad) and India–Indonesia maritime cooperation.
Amit Shah highlighted during his address that the nation is poised to handle 10,000 million metric tonnes per annum (MMTPA) of cargo by developing deep-draft ports, including the upcoming Vadhavan Port near Mumbai, projected to rank among the world’s top ten ports from inception.

Environmental and Ecological Considerations

The project area overlaps with ecologically sensitive zones adjacent to the Galathea National Park and Campbell Bay National Park, home to rare species such as the Leatherback sea turtle, Nicobar macaque, and saltwater crocodile. Environmental clearance was granted in November 2022 after evaluation by the Ministry of Environment, Forest and Climate Change (MoEFCC).
Mitigation strategies include:

• Afforestation in the Aravalli Hills of Haryana to compensate for the estimated loss of 12–20 hectares of mangrove cover.
• Coral translocation efforts to safeguard marine biodiversity in reefs surrounding the island.
• Establishment of conservation reserves on Little Nicobar, Menchal, and Meroe Islands.

However, environmentalists and local groups, including the Society for Andaman and Nicobar Ecology (SANE), have expressed concerns over habitat disruption and seismic risks, as the island lies on an active fault line that contributed to the 2004 Indian Ocean tsunami.

Social and Tribal Implications

The project’s social impact is significant, particularly concerning the Shompen and Nicobarese indigenous communities, numbering around 1,761 individuals. While the project directly affects about 10 per cent of their reserve, experts caution that the projected population increase to over 350,000 residents could threaten traditional lifestyles and introduce health risks to isolated tribes.
Human rights organisations such as Survival International and independent anthropologists have warned against potential cultural displacement and disease exposure, urging adherence to the Forest Rights Act (2006) and the UN Declaration on the Rights of Indigenous Peoples.
The government maintains that the project’s location lies outside core tribal areas and that it incorporates adequate safeguards and rehabilitation measures to protect local interests.

Current Status and Future Prospects

By 2025, the project had entered an advanced implementation stage.

• Bids for the ₹41,000 crore Phase I transhipment port were opened, with participation from major Indian and global infrastructure firms, including Adani Ports, JSW Infrastructure, and Royal Boskalis Westminster N.V.
• NTPC floated tenders for a 5 MW solar plant with battery storage of up to 12 MWh, signalling a commitment to renewable energy integration.
• Seven deep-sea mining blocks were allocated off the Nicobar coast, with the establishment of the Offshore Areas Mineral Trust (OAMT) to fund environmental restoration and research.

Additionally, the India Maritime Week 2025, attended by over 1.5 lakh participants from 11 countries, witnessed 680 investment agreements worth ₹10 lakh crore, expected to create around 7 lakh jobs across maritime sub-sectors.

India’s Emerging Maritime Future

India’s maritime strategy, spearheaded by projects like the Great Nicobar Island Development, symbolises the country’s transition towards a blue economy powerhouse. With structural reforms, deep-draft port development, and enhanced global cooperation, India is setting the stage for a new era in trade, connectivity, and maritime security.