Sri Vijaya Puram, June 20: A proposal to repurpose government-owned land for commercial use has been mooted by a group of municipal councillors in Sri Vijaya Puram, with one site in particular, Machi Lane near Marina Park, emerging as the centerpiece of the plan. The location, formerly occupied by government residential quarters, is among the most valuable real estate assets in the Andaman and Nicobar Islands.
According to a source familiar with the matter, the proposal has been forwarded to the Ministry of Housing and Urban Affairs (MoHUA) for evaluation. If approved, it could pave the way for a large-scale shopping mall or similar commercial complex in Shadipur’s South Point area.
The potential project has been described as a step toward modernising the city’s commercial footprint, offering increased access to retail, recreation, and employment opportunities. However, it has also sparked quiet unease among some urban planners and residents, given the broader implications for housing policy and public infrastructure.
The site at Machi Lane was once designated for government employee housing, part of a network of residential quarters now languishing in various stages of neglect. Similar patterns are visible in Haddo, where an abandoned set of government flats across from the Fishermen Colony remains in disrepair, with no clear redevelopment plan in sight.

A review by The Wave Andaman found that these quarters have deteriorated due to chronic underfunding, poor maintenance, and bureaucratic delays. With little to no availability of official housing, many government employees have been forced into the private rental market.
The proposed repurposing also comes at a time of broader economic and infrastructural transformation across the islands. Though the Andaman and Nicobar Islands have a relatively small population, just over 3.8 lakh as per the 2011 Census, the territory is undergoing rapid development.
The estimated per capita income in 2023 stood at ₹2,58,142, reflecting a year-on-year increase. In 2024, this figure rose further to ₹2,75,757.54, underlining continued economic momentum across sectors such as tourism, aquaculture, logistics, and green energy.
Growth in the blue economy, including fisheries, aquaculture, and seaweed farming, is being supported by initiatives from NABARD, international partnerships with JICA and Indonesia, and infrastructure upgrades such as water aerodromes and digital connectivity. Fish production in 2022–23 stood at nearly 47,000 tonnes, while coconut farming and organised agriculture have expanded under subsidised credit plans.
Meanwhile, tourism continues to climb, with over 3 lakh domestic and more than 7,000 foreign visitors recorded in 2023. The islands’ reputation as an eco-friendly destination has been reinforced by projects like the Blue Flag-certified Radhanagar Beach and lighthouse tourism initiatives.
In this context, the municipal council’s plan represents a crossroads between legacy infrastructure and the new urban vision taking shape in Sri Vijaya Puram. Whether these commercial projects will help catalyse inclusive growth or erode vital public assets remains to be seen.