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Global Shipping & Trade
Asia

Shipping Ministry proposes cruise terminal at Great Nicobar Island

by Kalpana Pandey
January 7, 2025
in Asia, News, Ports & Terminals
Reading Time: 3 mins read
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An international cruise terminal to facilitate a global port-led city, high-end tourism infrastructure, and a ship-breaking yard are among the new additions to the Rs 72,000 crore mega-infrastructure project in Great Nicobar Island proposed by the Union Shipping Ministry. However, the government has also been denying right to information (RTI) requests about environment clearances for this mega project, which includes a military-civil airport, on the grounds that it would affect India’s security and strategic concerns. It is not clear how the Shipping Ministry’s new proposals will be compatible with such concerns.

Apart from the cruise terminal, the Shipping Ministry has also sought 100 acres of land with a seafront for a proposed ship building and ship breaking facility, and an export-import port, in a series of letters written to the Andaman and Nicobar Administration and the Union Home Ministry over the last eight months.

The existing Great Nicobar project already includes an international container transshipment port proposed at Galathea Bay, an airport, a power plant, and a massive greenfield township and tourism project to be spread over 130 sq km of land that is now pristine tropical forest. The project is being implemented by the Port Blair-based Andaman and Nicobar Islands Integrated Development Corporation Ltd (ANIIDCO). The Stage I forest clearance for diversion of 130 sq. km of forest land was granted in in October 2022 and followed in November 2022 by environmental and coastal regulation zone (CRZ) clearances.

In April 2024, Rajeev Kumar, an Under-Secretary in the Shipping Ministry wrote to the Chief Secretary of the A&N administration, asking for another 100 acres of land with a 500-metre seafront for ship repair and ship building facilities in Campbell Bay, the administrative headquarters of Great Nicobar Island. This was followed in May by a request, again from Mr. Kumar, to the A&N Shipping Secretary, seeking to enable Campbell Bay to be declared an export-import port to import construction material from neighbouring countries for the transshipment terminal at Galathea Bay.

On September 18, Union Shipping Secretary T.K. Ramachandran himself wrote a letter to the Union Home Secretary, noting that the vision was “to transform Great Nicobar Island into a ‘Global Port-Led City’ with a strategic focus on establishing a ‘sustainable and High-End Eco-tourism Destination’.” He also advocated for an international and domestic cruise terminal “to accommodate high-end and domestic tourists”.

The responses, from the A&N Chief Secretary on October 23 and then from an ANIIDCO general manager on October 24, indicate a reluctance on their part to commit to these proposals. Their letters ask the Union Shipping Ministry to engage a specialised consultant on its own to explore the techno-economic feasibility of the cruise terminal and to discuss the matter of the export-import port with the concerned Ministry.

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They also argue that ship repair will be not be compatible with the purpose of the greenfield township and it “could undermine the envisioned water front activities, particularly the tourism infrastructure envisaged for Great Nicobar Island”. In an earlier response in July, ANIIDCO had also noted that the coastline comes under a coastal regulation zone (CRZ 1a) as it has coral reefs along almost the entire east coast and that this would be a constraint for ship repair activity.

Concerns have already been raised about the environmental impact of the existing project but multiple requests for more details have been denied under Section 8(1)(a) of the RTI Act that invokes issues of sovereignty, integrity, security, and the strategic concerns of the country. In November 2022, Mumbai-based researcher Prasad Kale had filed an RTI application asking the Union Environment Ministry for information related to the clearances granted to the project.

The Ministry refused, invoking Section 8(1)(a) and also relying on a Ministry of Home Affairs order stating that the proposed airport was a dual-use military-civil facility which will come under the operational control of the Indian Navy (through DO letter No. 15020/24/2020- Plg. Cell dated 15.09.2022). This argument was upheld by the Central Information Commissioner in its June 2024 order, which only directed that information be released on the compensatory afforestation proposed for the project.

Given the MHA’s stance and the consistent denial of information on the grounds that the project required secrecy because of its strategic location and security concerns, the Shipping Ministry’s recent proposals stand out. There is no mention, anywhere in the Ministry’s six-month-long running correspondence on its new proposals, about these strategic concerns that have been used to deny information about the environment and other risks. 

Tags: cruise terminalGalathea BayGrear Nicobar IslandShipping Ministry
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Kalpana Pandey

The Maritime Gateway Editorial Team delivers trusted news, analysis, and insights on shipping, ports, logistics, supply chains, and global trade, backed by industry expertise and editorial review.

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