The Andaman & Nicobar Administration, through the Andaman & Nicobar Islands Integrated Development Corporation Ltd. (ANIIDCO), has invited participation from the private sector for the development of luxury resorts at exotic island locations under a Design, Build, Finance, Operate, and Transfer (DBFOT) model on a Public-Private Partnership (PPP) basis.
The projects, to be offered on long-term concession, include Aves Island with a site area of 2.75 hectares and 50 keys, Long Island with 42.2 hectares and 220 keys, Megapode Resort at Sri Vijaya Puram with 2.92 hectares and 128 keys, Smith Island with 25 hectares and 70 keys, and Shaheed Dweep with 9.7 hectares and 120 keys. The pre-bid meeting is scheduled for 16:00 hrs on August 14, 2025, and the bid submission deadline is 15:00 hrs on September 15, 2025. Project requirements, eligibility criteria, selection process, and other details are included in the bid documents available for download from www.eprocure.andaman.gov.in. Site locations can also be accessed via the QR code provided in the tender notice. Further details are available at www.aniidco.and.nic.in, by calling 03192-232098, or via email at gmaniidco.and@nic.in.
The tender announcement comes alongside the administration’s wider push to attract high-end hospitality brands through a series of planned roadshows. According to well-placed sources, this effort is part of a renewed focus on low-density, high-value tourism and will be anchored around resort-led infrastructure proposals outlined in the recently finalised Project Implementation Mechanism (ANI PIM). The initiative is being monitored at the highest level of the administration, including the Lieutenant Governor and the Chief Secretary.
Three projects form the initial set of offerings being prepared for potential investors: a 50-room resort on Aves Island to be developed over 2.75 hectares with a projected investment of ₹66 crore; a 70-room resort across 25 hectares on Smith Island, estimated at ₹126 crore; and the redevelopment of the existing Megapode Resort at Sri Vijaya Puram into a 128-room facility under a concession model with an expected investment of ₹175 crore. Officials confirmed that the Aves Island project has received Coastal Regulation Zone (CRZ) clearance and all three will incorporate renewable energy systems, water recycling, and green building standards, including GRIHA or LEED certifications.
In addition to these, Long Island and the Ross–Smith twin islands have been identified for potential tourism-focused development, with infrastructure upgrades such as new jetties and enhanced air connectivity under consideration. Two international consulting firms have been engaged to structure investor transactions and advise on PPP models. Initial discussions have begun with leading hotel groups, and while no formal bids have yet been submitted, interest from the hospitality sector has been described as cautiously positive.
Segments of the local population have expressed support for the prospect of improved livelihoods, but some have voiced concern over resource strain, land rights, and potential displacement, particularly on Smith Island. Officials have acknowledged that gaps in core infrastructure, including sanitation, drainage, and waste management, would need to be addressed alongside tourism expansion.
The push aligns with Prime Minister Narendra Modi’s broader vision of developing India’s island territories, including Lakshadweep and the Andaman & Nicobar Islands, into sustainable, world-class tourism hubs. Recent initiatives in Lakshadweep and the ongoing Great Nicobar Island Development Project are part of this larger strategy to couple tourism with strategic maritime infrastructure while protecting fragile ecosystems and cultural heritage.
