India Launches ₹72,000-Crore Mega Project to Transform Great Nicobar Island
February 1, 2026
India plans to spend ₹72,000 crore to develop Great Nicobar Island into a major transshipment and defence hub. The project covers 166 sq km, about 18% of the island. It includes an international container terminal at Galathea Bay, expected to handle 14.2 million TEUs and reduce India’s dependence on foreign ports. A new 24/7 airport will serve both civilian and military traffic, handling up to 4,000 passengers hourly. The plan also includes a large township, increasing the population from 8,000 to over 3.5 lakh in 30 years. Power will come from a 450-MVA gas and solar plant.
The island is crucial for trade and security as it overlooks the Strait of Malacca, a key global shipping route. This location can help India monitor Chinese naval movement and boost domestic cargo handling.
However, the project faces criticism over its speed and environmental impact. It requires cutting nearly 9.64 lakh trees and risks harming wildlife like the giant leatherback turtle and rare species such as the Nicobar megapode. Environmentalists say the impact assessment used limited data. Proposed tree plantation to compensate is in Haryana, far from the site, raising concerns about real ecological replacement. Coral reefs will also be affected, with uncertain success in relocation efforts.
Social concerns are serious. The island is home to the Shompen and Nicobarese tribes. About 3 lakh newcomers will alter their way of life. The Shompen, vulnerable tribal hunters with little outside contact, could face health risks and loss of habitat. The Nicobarese fear losing ancestral lands on the west coast, now part of the project zone. Although the local Tribal Council initially gave consent, it later withdrew support, but the government is continuing anyway.
The National Green Tribunal briefly halted work in 2023 but then allowed it to continue after a secret committee report. Critics call for more transparency. Tribal leaders allege forced land surrender claims.
This ambitious project is set to change a fragile ecosystem and indigenous lives while boosting India’s strategic and commercial power in the Indian Ocean.
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Tags:
Great Nicobar Island
Infrastructure Project
Environment Impact
Tribal rights
Transshipment Hub
Defence
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