Great Nicobar Project to Boost India’s Maritime Global Trade

Syllabus: GS3/ Infrastructure/ Environment

Context

• At the India Maritime Week 2025 in Mumbai, the Union Home Minister announced the Great Nicobar Project will play a transformative role in enhancing India’s maritime global trade and shipbuilding capacity.

India’s Maritime Strength

• India’s coastline spans over 11,500 km across 13 coastal states, providing a strong base for maritime trade.
• Maritime activities contribute nearly 60% of India’s GDP, reflecting their strategic and economic importance.
• The government aims to expand port-handling capacity from the current 2,700 million tonnes per annum (MTPA) to 10,000 MTPA through new mega port projects.

The Great Nicobar project

• The Project involves developing an International Container Transshipment Terminal (ICTT), an international airport, township development, and a 450 MVA gas and solar-based power plant on the island.
• The ICTT is expected to allow Great Nicobar to participate in the regional and global maritime economy by becoming a major player in cargo transshipment. 
• A proposed “greenfield city” will tap into both the maritime and tourism potential of the island.
• The site for the proposed ICTT and power plant is Galathea Bay on the southeastern corner of Great Nicobar Island, where there is no human habitation.

Concerns over the project

• Ecological Impact: The project threatens old-growth forests, which are the only habitat for ~24% of the island’s species.
• Legal and Procedural Issues: The Environmental Appraisal Committee allegedly ignored anthropological and ecological objections.
• Economic Viability Concerns: Experts questioned the economic feasibility of the project, given the high costs and ecological sensitivity of the region.
• Indigenous Rights Violation: The project allegedly violates the rights of the Shompen, a Particularly Vulnerable Tribal Group (PVTG) of hunter-gatherers. The disruption of their traditional lands and lifestyle raises human rights concerns.
• Volatile Zone: The proposed port is situated in a seismically active zone that experienced a significant geological event during the 2004 tsunami, leading to concerns about the safety and long-term stability of the infrastructure in such a location.
• Transparency Issues: Multiple requests for detailed project information were denied under Section 8(1)(a) of the RTI Act, citing reasons of sovereignty, integrity, and security of the nation.

Andaman and Nicobar Islands – Location: The islands are located 1,300 km southeast of the Indian mainland in the Bay of Bengal. 1. It extends from 6° 45′ N to 13° 41′ N and from 92° 12′ E to 93° 57′ E. – This archipelago is composed of more than 500 big and small islands, which are divided into two distinct groups of islands – The Andaman Islands and the Nicobar Islands. 1. ‘Ten Degree Channel’ separates the Andaman Islands in the north from the Nicobar Islands in the south. The Andaman Islands – These islands are divided into three major sub-groups – North Andaman, Middle Andaman, and South Andaman. – The capital city of the Andaman & Nicobar Islands Port Blair is located in South Andaman. The Nicobar Islands – These islands are divided into three major sub-groups – Northern Group, Central Group, and Southern Group. 1. The Great Nicobar is the largest and the southernmost island in the group located in the Southern Group. 2. India’s southernmost point ‘Indira Point’ is located at the southern tip of the Great Nicobar. Other Features – Most of these islands have a volcanic base and are made of tertiary sandstone, limestone, and shale. 1. The Barren and Narcondam islands, north of Port Blair, are volcanic islands. 2. Some of the islands are fringed with coral reefs. – Saddle Peak (737 m) in North Andaman is the highest peak in the Andaman and Nicobar Islands. – The names of the following three islands were changed in 2018: 1. Ross Island – renamed as Netaji Subhash Chandra Bose Dweep 2. Neil Island – renamed as Shaheed Dweep 3. Havelock Island – renamed as Swaraj Dweep

Source: TH