Tarun Karthick
Sri Vijaya Puram, 15 December 2025
In a significant push toward sustainable, tourism-led development, the Andaman & Nicobar Administration has finalised successful tenders for four flagship eco-tourism projects across the Islands, in line with the Government of India’s Holistic Development of Islands (HDI) framework. The initiative aims to position the Andaman & Nicobar Islands as a leading global destination for responsible and nature-centric tourism.
Under the first phase of implementation, greenfield beach-resort projects at Long Island, Aves Island, Smith Island and Shaheed Dweep, along with the redevelopment of the Megapode Resort in Sri Vijaya Puram, were taken up for development under the Public-Private Partnership (PPP) model. The projects are being planned in strict adherence to international sustainability benchmarks, including LEED, GRIHA and Green Globe certifications, while fully complying with Coastal Regulation Zone (CRZ) provisions and other environmental regulations.
According to the Administration, the proposed resorts will follow a low-impact development approach, with designs that harmonise with the Islands’ fragile ecosystems. Each project will be equipped with self-sustaining infrastructure and powered largely by renewable energy sources, including solar installations, to minimise environmental impact and ensure long-term ecological balance.
The eco-tourism initiative has been revived after earlier bidding attempts between 2018 and 2021 failed to attract viable responses. Following detailed market consultations with leading hospitality and tourism players, the Administration revised the Request for Proposal (RFP) to make the projects more attractive to investors. The revised RFP, approved by the Standing Finance Committee and the PPP Appraisal Committee, was issued on July 28, 2025.
The updated process elicited a strong response from the industry. Over 100 representatives from nearly 60 prospective investors participated in the pre-bid meeting held on August 14, 2025, reflecting heightened interest. Officials noted that the bids received surpassed expectations, with the highest offers ranging between three and ten times the Government’s reserve price.
Following approval by the competent authority, Letters of Award are now being issued for the eco-tourism resorts at Long Island, Aves Island, Shaheed Dweep and for the redevelopment of the Megapode Resort. As per the concession agreements, apart from an annual concession fee, revenue-sharing will be at the rate of 3.6 per cent for the Megapode Resort, 3 per cent for Shaheed Dweep, and 2 per cent each for Long Island and Aves Island. The concession period has been fixed at 50 years for the Megapode Resort and 75 years for the remaining projects, inclusive of the construction period.
The Administration said the projects are expected to generate employment, boost local livelihoods and set new benchmarks for sustainable tourism development in the Andaman & Nicobar Islands.
