In a historic announcement at India Maritime Week 2025, Union Home Minister Amit Shah revealed that the Great Nicobar Project will increase India’s maritime trade capacity “multiple times,” positioning the nation as a dominant player in global commerce. This $5 billion mega-infrastructure initiative represents India’s boldest maritime ambition to date, transforming a remote island into what maritime historians are calling “India’s Jebel Ali of the East.”
The Great Nicobar Project, officially valued at ₹72,000-81,000 crore, aims to establish a comprehensive maritime ecosystem at India’s southernmost tip. With Cabinet approval expected within months and the tendering process set to begin in early 2025, this transformational project will reshape India’s position in the Indo-Pacific region while addressing the nation’s strategic, economic, and defense priorities.
Table of Contents
Understanding the Great Nicobar Project: India’s Maritime Game-Changer
What is the Great Nicobar Project?
The Great Nicobar Project is a comprehensive holistic development initiative conceptualized by NITI Aayog and implemented by the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO). This mega-infrastructure undertaking will transform the pristine Great Nicobar Island into a thriving maritime and logistics hub.
Recent developments indicate the project cost has been revised from ₹75,000 crore to ₹81,000 crore in 2025, reflecting scope expansion and updated cost estimates. The project received environmental clearance in November 2022 and is now in its final approval stage.
Vision and Scope
The project envisions creating a world-class transshipment port, international airport, and sustainable township spanning 166.10 square kilometers. It aligns seamlessly with India’s Maritime Vision 2030 and Amrit Kaal Vision 2047, representing the government’s commitment to maritime excellence.
According to official reports, all necessary formalities including consultancy, detailed project reports, and environmental impact assessments have been completed. The Lieutenant Governor of Andaman and Nicobar Islands announced in December 2024 that only Cabinet approval remains pending.
Historical Context
Great Nicobar Island, India’s southernmost territory, houses the iconic Indira Point—just 145 kilometers from Indonesia. The island covers 910 square kilometers of rainforest and is part of a UNESCO-recognized biosphere reserve. The 2004 tsunami tragically demonstrated the island’s vulnerability, with its southern tip sinking approximately 15 feet.
Despite these challenges, the island’s unmatched strategic location near the Malacca Strait makes it invaluable for India’s maritime ambitions.
Strategic Location: Why Great Nicobar Matters for Global Trade
Proximity to Critical Shipping Lanes
The Great Nicobar Project benefits from an extraordinary geographic advantage. The island sits at the confluence of several critical maritime chokepoints:
- Malacca Strait: Channels approximately 25-30% of global maritime trade
- Six Degree Channel: Links the Bay of Bengal to the Andaman Sea
- Sunda and Lombok Straits: Alternative routes for large vessels
- Equidistant positioning: Nearly equal distance from Colombo, Port Klang, and Singapore
Union Home Minister Amit Shah emphasized that with India’s 11,500-kilometer coastline contributing nearly 60% of GDP, the Great Nicobar Project will strategically position India to capture significant transshipment traffic currently routed through foreign hubs.
Reducing Dependency on Foreign Ports
Currently, Indian cargo accounts for approximately 75% of transshipment at Sri Lankan and Singaporean ports. This dependency costs India between $200-300 million annually in additional logistics expenses. The Great Nicobar Project aims to reclaim this business by offering:
- Reduced transit times for Indian import-export cargo
- Lower transshipment costs through domestic handling
- Enhanced supply chain efficiency for manufacturers
- Strategic independence from geopolitically sensitive foreign ports
Maritime experts predict the project could capture 20-30% of regional transshipment cargo within the first decade of operations.
Alignment with Global Trade Routes
The project’s location places India at the heart of the Indo-Pacific maritime network. Over 80% of global maritime oil trade passes through the Indian Ocean region, and Great Nicobar’s position allows India to become a crucial node in these supply chains.
Core Infrastructure Components of the Great Nicobar Project
International Container Transshipment Terminal (ICTT)
The centerpiece of the Great Nicobar Project is the Galathea Bay ICTT, designed as a mega container terminal with specifications that rival Singapore’s capabilities:
Phase-I Specifications:
- Capacity: 4 million TEUs (Twenty-Foot Equivalent Units)
- Ultimate capacity: 14.2-16 million TEUs annually
- Deep-water berths: Capable of handling mega container vessels
- Completion target: Phase-I expected by 2028
The Union Shipping Ministry opened bids worth ₹41,000 crore for the port construction in January 2023. Ministry officials confirmed the terminal will be equipped with state-of-the-art automation and green port technologies.
Greenfield International Airport
The Great Nicobar International Airport represents a dual-use facility serving both civilian and defense requirements:
Technical Specifications:
- Runway length: 3,300 meters
- Capacity: 4,000 passengers per peak hour
- Aircraft compatibility: Wide-body international aircraft
- Strategic value: Rapid deployment capability for defense forces
The airport will dramatically improve connectivity for tourism development while serving critical defense mobilization needs during regional contingencies.
Hybrid Power Infrastructure
Energy independence forms a crucial component through the 450 MVA Gas and Solar Power Plant:
- Renewable component: NTPC invited bids for 5 MW solar projects with 4-12 MWh battery storage in April 2025
- Hybrid approach: Combines conventional gas-based generation with solar energy
- Sustainability focus: Reduces carbon footprint while ensuring reliable supply
- Future-ready: Designed for expansion as township population grows
Integrated Township Development
The planned township will span 16,610 hectares, accommodating an estimated population of 65,000-350,000 residents including workers, administrators, and support staff. Features include:
- Modern residential complexes with world-class amenities
- Healthcare infrastructure including multi-specialty hospitals
- Educational institutions for local and migrant populations
- Digital infrastructure supporting e-governance and telemedicine
Recent Expansions
The Union Shipping Ministry proposed significant additions to the original Great Nicobar Project scope in 2025:
- International cruise terminal for luxury tourism development
- Ship-breaking yard to support India’s shipbuilding ambitions
- Coastal mass rapid transport system connecting project zones
- Free trade zone attracting international investment
These expansions demonstrate the government’s commitment to creating a comprehensive maritime ecosystem rather than merely a port facility.
Economic Impact: Multiplying India’s Maritime Trade Capacity
Capacity Multiplication Strategy
At India Maritime Week 2025, Home Minister Amit Shah announced ambitious plans to expand India’s port-handling capacity from the current 2,700 MTPA (Million Tonnes Per Annum) to 10,000 MTPA through mega port developments. The Great Nicobar Project represents a cornerstone of this expansion strategy.
Industry reports project India’s ports sector will add 500-550 MTPA capacity annually between FY2023 and FY2028, driven primarily by petroleum, coal, and containerized cargo growth. The Great Nicobar terminal alone will significantly contribute to this expansion.
Job Creation and Employment
The economic multiplier effects of the Great Nicobar Project extend far beyond port operations:
Direct Employment:
- 2-2.5 lakh jobs across construction, operations, and administration
- Skilled technical positions in port management and logistics
- Service sector employment in hospitality and tourism
Indirect Opportunities:
- Ancillary industries supporting port operations
- Supply chain businesses serving the island economy
- Small and medium enterprises in manufacturing and services
Tourism and Hospitality Development
The project envisions transforming Great Nicobar into a luxury tourism destination with:
- Eco-tourism circuits leveraging pristine natural beauty
- Adventure tourism opportunities in marine environments
- International cruise terminal attracting global visitors
- High-end resorts operated by international hospitality brands
The Andaman and Nicobar Islands’ per capita income of ₹1,24,361 (2015-16 data) significantly trails other Union Territories. The Great Nicobar Project aims to bridge this economic gap through sustained infrastructure investment.
Trade Efficiency and Cost Savings
Maritime experts estimate the project will generate annual savings of ₹4-5 trillion for Indian shippers through:
- Reduced transshipment fees paid to foreign ports
- Shorter transit times improving inventory efficiency
- Enhanced bargaining power in freight negotiations
- Domestic value addition in logistics services
India currently pays $70-75 billion annually to foreign shipping firms. Minister Sarbananda Sonowal emphasized that expanding India’s domestic fleet alongside port infrastructure will significantly reduce this outflow.
Regional Economic Integration
The Great Nicobar Project strengthens India’s position within the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) framework, creating a “growth pole” for regional trade. The project facilitates:
- Regional transshipment hub for BIMSTEC nations
- Logistics corridor connecting South and Southeast Asia
- Economic partnership opportunities with ASEAN countries
- Investment attraction from global shipping lines
Defense and Geopolitical Significance
Strategic Counter to China’s Maritime Expansion
The Great Nicobar Project represents India’s response to China’s expanding naval presence in the Indo-Pacific. Maritime analysts characterize it as “India’s counter to China’s ‘string of pearls’—not through confrontation, but by creating hubs of connectivity and commerce.”
Critical Strategic Considerations:
China’s attempts to establish military facilities at Coco Islands (just 55 kilometers north of Andaman and Nicobar Islands) raise serious security concerns. The Great Nicobar development provides India with a forward operating base for:
- Maritime domain awareness across critical shipping lanes
- Rapid response capability to regional security threats
- Surveillance infrastructure monitoring naval movements
- Deterrence posture protecting Indian Ocean interests
INS Baaz and Military Integration
The existing INS Baaz naval base at Campbell Bay will be integrated with new infrastructure, creating a comprehensive defense ecosystem. This integration enables:
- Joint operations capability combining navy, air force, and coast guard assets
- Quick reaction force deployment using the new international airport
- Intelligence gathering from strategic vantage points
- Humanitarian assistance and disaster response coordination
Quad Alliance and Regional Security Architecture
The Great Nicobar Project aligns with India’s commitments under the QUAD (Quadrilateral Security Dialogue with USA, Japan, and Australia). Union Home Minister Shah noted India’s role in bridging the Indo-Pacific and Global South, with democratic stability and naval capabilities forming the foundation.
The project supports:
- Free and Open Indo-Pacific principles championed by QUAD
- Rules-based maritime order protecting commercial shipping
- Regional stability through economic interdependence
- Counter-piracy operations in the Indian Ocean Region
Monitoring Critical Chokepoints
Great Nicobar’s proximity to the Malacca, Sunda, Lombok, and Ombai-Wetar straits provides India with unprecedented ability to monitor maritime traffic. Over one-third of global sea trade passes through these waters, making surveillance capabilities strategically invaluable.
Environmental Safeguards and Tribal Welfare Measures
Biodiversity Conservation Framework
The Great Nicobar Project operates within a UNESCO-recognized biosphere reserve hosting extraordinary biodiversity. The Ministry of Environment, Forest and Climate Change granted conditional environmental clearance with stringent safeguards:
Protected Species:
- Giant leatherback turtles nesting at Galathea Bay
- Nicobar megapode bird and Great Nicobar crake
- Nicobar crab-eating macaque (endemic species)
- Saltwater crocodiles in coastal mangroves
Conservation Monitoring Mechanisms
Three specialized monitoring committees were established in 2023 to oversee compliance:
Committee Mandates:
- Biodiversity Conservation Committee: Monitors endemic flora and fauna protection
- Tribal Welfare Committee: Safeguards indigenous community rights
- Pollution Control Committee: Ensures environmental compliance
The Ministry of Home Affairs sanctioned ₹88.69 crores (₹886 million) for conservation plan preparation, with total environmental mitigation projected at ₹9,162.22 crore over 30 years.
Wildlife Corridor Development
To minimize ecological disruption, eight wildlife corridors have been designed ensuring safe movement of:
- Arboreal animals through canopy connections
- Terrestrial species including reptiles and amphibians
- Marine species through protected coastal zones
- Migratory birds via undisturbed flyways
Compensatory Afforestation
The project will result in 12-20 hectares of mangrove loss, compensated through afforestation in Haryana’s Aravallis per India’s forest conservation rules. Critics question this “remote compensatory afforestation,” but the government maintains compliance with legal frameworks.
Nearly one million trees may require felling, representing approximately 130 square kilometers of rainforest. However, Andaman and Nicobar Islands maintain over 75% forest cover, and the project affects only 10% of Great Nicobar’s 910 square kilometer area.
Tribal Rights Protection
The Great Nicobar Project directly impacts the 1,761-member Shompen and Nicobarese tribes, recognized as Particularly Vulnerable Tribal Groups (PVTGs). Safeguards include:
Legal Framework:
- Forest Rights Act (2006) compliance mandatory
- Shompen Policy (2015) guidelines enforced
- Jarawa Policy (2004) principles applied
- Tribal Council consultation required before major decisions
Protection Measures:
- No displacement from tribal reserve areas
- Traditional land rights preserved
- Cultural heritage protection programs
- Health screening for outside workers to prevent disease transmission
The Ministry of Tribal Affairs sought a factual report in October 2025 regarding complaints about forest rights settlement, demonstrating ongoing oversight.
Seismic and Tsunami Risk Mitigation
Great Nicobar sits atop a major seismic fault line—the 2004 tsunami epicenter was approximately 80 miles away. The island’s southern tip sank 15 feet during that disaster. Current mitigation strategies include:
- Tsunami-resilient infrastructure design standards
- Early warning systems integration
- Elevated construction in vulnerable zones
- Emergency evacuation planning for all facilities
A geologist warned in July 2025 that an ongoing cluster of smaller earthquakes near the Nicobar Islands could signal volcanic activity, raising tsunami concerns. All project infrastructure incorporates these risk assessments.
Project Timeline, Challenges, and Future Outlook
Phased Development Strategy
The Great Nicobar Project follows a carefully planned 30-year implementation timeline divided into three phases:
Phase I (2025-2030):
- ICTT Phase-I: 4 million TEU capacity operational by 2028
- Airport construction: International terminal completion
- Power plant: Initial 450 MVA capacity established
- Township infrastructure: Core residential and administrative zones
Phase II (2031-2038):
- Port expansion: Additional berths increasing to 10 million TEU
- Tourism infrastructure: Luxury resorts and cruise terminal operational
- Industrial development: Free trade zone fully functional
- Population growth: Township accommodating 100,000+ residents
Phase III (2039-2047):
- Full capacity realization: 14.2-16 million TEU annual throughput
- Regional hub status: Established competitor to Singapore and Colombo
- Mature ecosystem: Integrated maritime, tourism, and defense infrastructure
- Economic maturity: Self-sustaining revenue generation
Current Status and Immediate Next Steps
As of October 2025, the project status includes:
- Environmental clearance: Granted November 2022
- Detailed project reports: Completed
- EIA assessments: Finalized
- Bid opening: ₹41,000 crore port contract bids opened January 2023
- Cabinet approval: Expected within 1-2 months (as of December 2024)
- Tendering process: To commence immediately post-approval
The Lieutenant Governor confirmed during the 16th Apna Pariwar Global Business Conclave that all remaining formalities await only Cabinet sanction.
Implementation Challenges
Logistical Complexities:
The Great Nicobar Project faces significant implementation hurdles:
- Remote location: 2,000 kilometers from major mainland cities (Chennai, Kolkata)
- Supply chain constraints: All materials and equipment require maritime transport
- Skilled labor shortage: Attracting workforce to isolated island
- Weather vulnerabilities: Cyclone and monsoon disruptions
- Limited local resources: No industrial hinterland or raw materials
Environmental Opposition:
Environmental groups including Survival International have opposed the project citing:
- Biodiversity loss: Destruction of pristine rainforest ecosystem
- Marine ecosystem damage: Dredging impacts on coral reefs
- Endemic species threat: Extinction risk for unique flora and fauna
- Tribal displacement: Cultural destruction of Shompen communities
Former bureaucrats and scientists have publicly demanded project suspension pending comprehensive social and environmental impact reassessments.
Economic Viability Questions:
Critics question whether replicating Singapore or Hong Kong models on remote Great Nicobar is economically realistic without:
- Industrial hinterland generating cargo demand
- Established trade networks providing shipping line commitment
- Supporting infrastructure in surrounding regions
- Proven demand justifying massive investment
Government Response and Mitigation
Environment Minister Bhupender Yadav published a detailed explainer in September 2025 addressing concerns:
Key Government Arguments:
- Strategic necessity outweighs environmental concerns
- Robust safeguards through monitoring committees ensure compliance
- Economic benefits include 2-2.5 lakh jobs and regional development
- Tribal protection measures prevent displacement and cultural harm
- National security imperatives justify controlled environmental impact
Prime Minister Narendra Modi shared this article, emphasizing the project represents “economy and ecology complementing each other” rather than conflicting objectives.
Investment and Funding Framework
The Great Nicobar Project requires massive capital mobilization:
Public Investment:
- Central government funding: Primary source for infrastructure
- PSU participation: NTPC, Port authorities, Airport Authority
- MHA allocation: ₹886 million for conservation measures
Private Participation:
- PPP model: Port operations under public-private partnership
- Adani involvement: Reports suggest Adani Ports participation
- International investment: Attracting global shipping and logistics firms
- Tourism sector: Private resort and hospitality development
India Maritime Week 2025 targets ₹10 lakh crore investment commitments for the maritime sector, with Great Nicobar representing a significant portion.
Long-term Vision and Success Metrics
Measurable Outcomes by 2047:
The Great Nicobar Project success will be evaluated against:
- Container throughput: 14-16 million TEU annual capacity utilization
- Transshipment capture: 20-30% of regional cargo routed through Great Nicobar
- Job creation: 2-2.5 lakh direct and indirect employment
- GDP contribution: Measurable addition to India’s maritime economy
- Strategic value: Enhanced naval presence and surveillance capabilities
- Sustainability metrics: Zero net biodiversity loss and tribal welfare maintenance
Maritime historian Nick Collins’ comparison to Dubai’s Jebel Ali Port provides an aspirational benchmark. Jebel Ali transformed from “folly in the desert” to cornerstone of Gulf economic success—India hopes for similar transformation with Great Nicobar.
Conclusion
The Great Nicobar Project represents India’s most ambitious maritime infrastructure initiative, poised to transform the nation’s position in global trade networks. Union Home Minister Amit Shah’s announcement that the project will increase maritime trade capacity “multiple times” underscores its transformative potential.
With Cabinet approval imminent and implementation set to begin in 2025, this $5 billion mega-project balances complex objectives—strategic necessity, economic opportunity, environmental stewardship, and indigenous rights protection. The project’s success will determine whether India can replicate Singapore’s and Dubai’s maritime hub models while maintaining its democratic and environmental values.
As India expands port capacity from 2,700 MTPA to 10,000 MTPA over the coming decade, the Great Nicobar Project will serve as the cornerstone of this transformation. The international container transshipment terminal, greenfield airport, and integrated township will collectively position India as an indispensable node in Indo-Pacific commerce.
The coming months will prove critical as the government navigates environmental concerns, tribal welfare obligations, and technical implementation challenges. For construction, infrastructure, and maritime stakeholders, the Great Nicobar Project offers unprecedented opportunities in India’s march toward becoming a top-five global maritime power by 2047.
Frequently Asked Questions
What is the total cost of the Great Nicobar Project?
The Great Nicobar Project cost has been revised to ₹81,000 crore (approximately $9.7 billion) in 2025, up from the original estimate of ₹72,000-75,000 crore. This includes the container terminal (₹41,000 crore), airport, power plant, township, and environmental mitigation measures totaling ₹9,162 crore over 30 years.
When will the Great Nicobar Project become operational?
Phase-I of the Great Nicobar Project container terminal is targeted for completion by 2028, with 4 million TEU capacity. The full project will unfold over 30 years (2025-2047) across three phases, with ultimate capacity of 14-16 million TEUs and a fully developed maritime ecosystem by 2047.
How will the Great Nicobar Project impact indigenous tribes?
The project affects 10% of the Shompen and Nicobarese tribal reserve area, impacting 1,761 tribe members. The government has implemented safeguards under the Forest Rights Act (2006), Shompen Policy (2015), and tribal consultation mandates. Official position maintains no forced displacement, though critics warn of cultural disruption from population influx and habitat loss.
Why is the Great Nicobar Project strategically important for India?
The project provides India with a forward base near the Malacca Strait, through which 25-30% of global maritime trade passes. It counters China’s expanding naval presence in the Indian Ocean, reduces dependency on foreign ports (Singapore, Colombo), saves $200-300 million annually in transshipment costs, and strengthens India’s position in QUAD alliance and Indo-Pacific security architecture.
What are the main environmental concerns?
The Great Nicobar Project will result in felling nearly one million trees covering 130 square kilometers, loss of 12-20 hectares of mangroves, potential destruction of coral reefs through dredging, threat to endangered species including leatherback turtles and Nicobar megapode, and impacts on a UNESCO-recognized biosphere reserve. The government has established three monitoring committees and allocated ₹886 million for conservation measures.
How many jobs will the Great Nicobar Project create?
The project is expected to generate 2-2.5 lakh (200,000-250,000) direct and indirect jobs across construction, port operations, logistics, tourism, administration, and ancillary industries. This represents the largest employment generation initiative in Andaman and Nicobar Islands’ history.
Who is implementing the Great Nicobar Project?
The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO), a government undertaking established in 1988, is the nodal agency implementing the project. NITI Aayog conceptualized the project, with AECOM India preparing the feasibility report. Reports suggest Adani Ports involvement, though official partnership details await Cabinet approval and tendering completion.
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