Proposed International Container Transhipment Port (ICTP) at Galathea Bay,Great Nicobar Island, got a thumbs down for “strategic objectives” from Public Investment Board (PIB) under Finance Ministry . This was back in August 2024. They told Ministry of Ports,Shipping and Waterways (MoPSW) to add strategic thinking to its proposal.
But Ministry of Defence called it “strategic” by March 2026,meeting records show. ₹81,000-crore Great Nicobar Project,including ICTP,township,airport,gas-powered plant,and tourism zone,has government citing it to withhold High Powered Committee (HPC) findings on environmental impact. Government also blocked RTI requests on environmental clearances,claiming strategic reasons.
Records from Public-Private Partnership Appraisal Committee (PPPAC) in March 2026 show PIB's view was noted,even as PPPAC approved the project. But it denied ₹12,230 crore in Viability Gap Funding (VGF),suggesting MoPSW use its own budget. VGF supports infrastructure projects that make economic sense but aren't financially viable.
Congress MP Jairam Ramesh slammed government for changing tune on project,claiming focus shifted to supposed strategic importance despite ecological risks. He argued Great Nicobar Island Project is mostly a commercial play.
Researcher Pankaj Sekhsaria,who's tracked environmental threats from project,said before November 2022 clearance,government didn't call it strategic. Only the airport was tagged for civilian and military use.
ICTP is key part of larger Great Nicobar Island Development Project,backed by Ministry of Home Affairs. Plan aims to grab transhipment cargo now going through Colombo,Singapore,Port Klang,projecting $200 million annual forex savings,maybe $1 billion by 2047.
Recent talks frame project as maritime security measure,especially against perceived China threats . It's near Malacca Strait,a major Chinese shipping route. Portrayed as a counter to Chinese naval moves in Indian Ocean. Tensions like U.S.-Iran over Strait of Hormuz add to narrative .
Critics,including ex-military officials,raise alarms over ecological impact,arguing infrastructure should follow coherent maritime strategy. They say military can be boosted without big environmental hit.
Though PPPAC approved it,attendees questioned financing. MoPSW asked for relaxations like VGF over 20% cap and market-based tariffs. Committee said these were big departures from norms,needing Cabinet nod.
PPPAC eventually okayed ₹48,862 crore project,split in two phases. First phase costs ₹27,793 crore,second ₹21,069 crore,with 50-year concession. First sub-phase takes 60 months,second 108 months.
Project will run as joint venture,private entity holding 55%,major ports including Kamarajar Port Limited (KPL) holding 45%. Environmental clearance came November 11,2022,to Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO),which will hand land to KPL for port's buildout.
