The Union Territory Administration of Andaman & Nicobar Islands has formally sought a substantial enhancement in financial allocation under the Revised Estimate (RE) 2025-2026 and Budget Estimate (BE) 2026-2027, including a special grant of ₹5,000 crore to fast-track essential and long-pending infrastructure projects across the Islands.
The plea, submitted to the central authorities, highlights that the current allocation under the Capital Head in BE 2025-26 is grossly inadequate for a region that is both strategically important and geographically fragmented. The request underscores that years of underfunding have left basic public infrastructure in poor condition, affecting not just the quality of life for Islanders but also diminishing the tourism experience in the globally promoted destination.
Comprising three districts, South Andaman, North & Middle Andaman, and Nicobar, the territory houses a mix of urban and rural populations, including vulnerable tribal communities in remote locations. While there has been a marked push in recent years under the leadership of the Hon’ble Prime Minister for boosting air connectivity and tourism, the note argues that core physical infrastructure has lagged significantly behind due to limited capital investment.
The appeal specifically points to underdeveloped assets in the Public Works Department (PWD) domain such as roads, bridges, water dams, culverts, protection walls, and soil erosion control structures. Officials note that many of these civic amenities either remain incomplete or deteriorated, impacting day-to-day life and posing challenges for both locals and tourists.
The Administration has also flagged the situation in North & Middle Andaman, where several settlement areas established between 1949 and 1965 still lack road connectivity and basic infrastructure. Despite being inhabited for over five decades, many communities continue to face isolation due to missing bridges across nallahs and inadequate civic facilities.
Adding weight to the request, the note includes photographic documentation of ground conditions (Annexure-A), offering visual evidence of underdeveloped areas and decaying public assets. These visuals are expected to serve as a reference point for decision-makers evaluating the budget request.
The submission also reflects on earlier missed opportunities. During the 17th Lok Sabha, several departments in the UT reportedly failed to fully utilize available funds, including a special ₹279 crore grant allocated in 2018 for the road sector. This led to fund surrenders, weakening the case for fresh allocations in subsequent cycles. The Administration now seeks to rectify that lapse by proposing a more coordinated execution strategy backed by enhanced capital support.
The request goes beyond immediate needs and seeks a sustained capital investment plan for the next five years, aimed at addressing structural gaps across the Islands. The Administration argues that reliable infrastructure is not only a necessity for Island residents but also crucial for national security, given the region’s strategic maritime location in the Bay of Bengal.
The submission concludes with a call for urgent central intervention, stressing that enhanced financial support will not only bridge long-standing development gaps but also unlock the Islands’ full economic potential in tourism, logistics, and agriculture.
With the next Union Budget cycle approaching, the request is expected to be reviewed by the concerned ministries and the Ministry of Home Affairs, which oversees Union Territories. Stakeholders in the Islands are now awaiting a response that could determine the development trajectory of the archipelago over the next half-decade.
