Three Major Eco-Tourism Projects to Come Up in Andaman and Nicobar Islands Under PPP Mode

Tarun Karthick

Sri Vijaya Puram, 08 May 2025

In a significant move to boost sustainable tourism in the Andaman and Nicobar Islands, the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO), on behalf of the A&N Administration, has proposed three major eco-tourism infrastructure projects. These developments—planned at Aves Island, Smith Island, and the iconic Megapode Resort in Sri Vijaya Puram—will be implemented through the Public Private Partnership (PPP) model.

The Standing Finance Committee (SFC), in its meeting on 3 April 2025, approved the proposal, paving the way for these transformative projects. Aves Island will see the development of a 50-key resort over 2.75 hectares at an estimated cost of ₹66 crore. At Smith Island, a 70-key resort is proposed across 25 hectares, with an investment of ₹126 crore. Meanwhile, the Megapode Resort is set to be redeveloped with 128 keys on a 2.93-hectare site, requiring an estimated ₹175 crore.

Each project comes with a long-term concession agreement—75 years for the Aves and Smith Island projects, including four years for construction, and 50 years for the Megapode Resort, with a three-year construction period.

CRZ Clearance from the Ministry of Environment, Forest and Climate Change (MoEF&CC) have already been secured for the Aves and Smith Island projects. For Megapode Resort redevelopment CRZ Clearance would be obtained. To ensure a transparent and efficient bidding process, ANIIDCO has appointed M/s KPMG and M/s Deloitte as transaction advisors for bid management and selection of private developers.

The resorts will adhere to international green building standards such as GRIHA, LEED, or Green Globe and aim to achieve five-star certification under Ministry of Tourism norms. Each development will feature self-sustaining infrastructure, including solar power backup, rainwater harvesting, sewage treatment, and water purification systems—all to be installed by the concessionaires.

In parallel, the A&N Administration is enhancing regional connectivity to support the tourism sector. This includes the upgradation of NH4 with new bridges and improved air travel options under the UDAN scheme.

These projects are expected to create significant employment opportunities, particularly for local youth, while promoting eco-friendly, high-quality tourism in the islands. The Request for Proposal (RFP) for all three developments is expected to be issued soon, following final approvals from the competent authority.