Sri Vijaya Puram, May 7, The Andaman and Nicobar Islands are set for a major leap in tourism development, as the Andaman & Nicobar Islands Integrated Development Corporation (ANIIDCO) announced an ambitious plan to build eco-resorts at Aves and Smith Islands and redevelop the iconic Megapode Resort in Sri Vijaya Puram under the Public Private Partnership (PPP) model. With a combined investment of ₹367 crore, the projects are expected to boost sustainable tourism, generate local employment, and position the islands as a premium destination on the global travel map.
The three resort projects together will add 248 rooms, or “keys,” offering a blend of luxury and eco-friendly design. ANIIDCO has already secured key environmental approvals, including Coastal Regulation Zone (CRZ) clearances, for the Aves and Smith Island resorts, while permissions for the Megapode redevelopment are currently under process. Global advisory firms KPMG and Deloitte have been roped in as transaction advisors to guide the competitive bidding process, ensuring transparency and efficiency.
The eco-resorts will adhere to internationally recognized sustainability standards such as GRIHA (Green Rating for Integrated Habitat Assessment), LEED (Leadership in Energy and Environmental Design), and Green Globe certification. Planned infrastructure will include rainwater harvesting systems, solar power generation units, and modern sewage treatment facilities to minimize environmental impact and promote responsible tourism.
The Aves Island project aims to tap into the island’s serene, unexplored beauty, offering travelers an off-the-grid experience surrounded by pristine beaches, coral reefs, and dense tropical forests. Meanwhile, the Smith Island resort will leverage the twin charm of Smith and Ross Islands, known for their striking sandbars and rich biodiversity. These projects are expected to open up new circuits beyond the established hubs of Havelock and Neil Islands, reducing tourist pressure on popular sites and promoting balanced regional development.
The Megapode Resort, a longstanding government-owned hotel near Sri Vijaya Puram’s Veer Savarkar International Airport, is set for a comprehensive makeover. Once redeveloped, it will serve as a modern gateway hotel catering to both domestic and international tourists, offering a mix of leisure, business, and transit accommodations. The PPP model is expected to bring in private sector expertise, higher service standards, and improved amenities, while ensuring government oversight on sustainability and local engagement.
Alongside the hospitality investments, the government is fast-tracking improvements in supporting infrastructure. Upgrades to National Highway 4 (NH4), which runs through the Andaman Islands, are underway to improve last-mile connectivity to remote tourist sites. The UDAN (Ude Desh ka Aam Naagrik) scheme, which aims to enhance regional air connectivity, is also being expanded to the islands, with new air routes under consideration to meet the expected rise in tourist arrivals.
The combined effect of these developments is expected to significantly transform the Andaman tourism landscape. According to industry observers, the introduction of high-end, eco-sensitive resorts will broaden the destination’s appeal to premium travelers, including international visitors who are increasingly seeking sustainable travel experiences. For local communities, the projects are likely to create direct employment opportunities in hospitality, transport, and construction, as well as indirect benefits through local supply chains, crafts, and services.
Environmental sustainability remains a key pillar of the development plan. By aligning with global green standards, ANIIDCO is aiming to ensure that the fragile island ecosystems are protected even as visitor numbers grow. Measures like solar power generation will help reduce carbon emissions, rainwater harvesting will ease the pressure on scarce freshwater resources, and sewage treatment systems will mitigate the risk of marine pollution. These initiatives reflect a conscious shift away from mass tourism models and toward a more curated, low-impact approach.
Tourism has long been one of the primary drivers of the Andaman economy, alongside fisheries, handicrafts, and defense establishments. However, with growing visitor numbers, there has been increasing pressure on the islands’ natural resources and infrastructure. The new projects represent an attempt to balance economic development with environmental conservation, offering tourists authentic, nature-based experiences while safeguarding local ecosystems.
The involvement of global consultants like KPMG and Deloitte is seen as a strategic move to ensure that the bidding and development process aligns with international best practices. Their role will include drafting bid documents, evaluating proposals, and advising on contractual frameworks to protect public interests. This is particularly crucial in the sensitive context of the Andaman Islands, where poorly managed tourism projects can lead to irreversible ecological damage.
As the islands gear up for this next phase of development, coordination between government agencies, private developers, environmental regulators, and local communities will be critical. While the PPP model brings fresh capital and innovation, it also requires robust governance to ensure that social and environmental safeguards are rigorously implemented.
The eco-resorts, once operational, are expected to play a vital role in diversifying the islands’ tourism portfolio. By offering experiences like wildlife watching, scuba diving, cultural trails, and nature retreats, the new destinations will attract a wider mix of travelers, from honeymooners and adventure seekers to eco-conscious globetrotters. This diversification is seen as essential to making Andaman tourism more resilient in the face of external shocks like pandemics, economic downturns, or natural disasters.
In the coming months, ANIIDCO is expected to launch the formal bidding process for the three projects, with construction slated to begin soon after contracts are awarded. Stakeholders across the tourism and hospitality industry will be watching closely as the Andaman Islands embark on what promises to be one of the most significant tourism transformations in recent years.
