The plan for the Holistic Development of Great Nicobar Island in Andaman and Nicobar Islands, has become the centre of numerous conflicts, with environmentalists, civil society organisations and former civil servants expressing diverse concerns and viewpoints. The plan is centred around the development of a greenfield city which includes development of four projects: an International Container Transhipment Terminal (14.2 million TEU) along with a Greenfield International Airport (4000 Peak Hour Passengers-PHP, dual military-civilian function), a Township & Area Development and a 450 MVA Gas and Solar based Power Plant in a total area of 16610 hectares in Nicobar district

Environmentalists have voiced strong opposition to the projects citing potential ecological damage to the delicate marine ecosystem and the destruction of critical habitats for endangered species such as the Leatherback turtles, Nicobar megapode (a flightless bird endemic to the Nicobar Islands), Nicobar Macaque and saltwater crocodiles. They argue that the construction of the port, along with the associated infrastructure, could lead to irreversible environmental degradation and loss of biodiversity in the Greater Nicobar region. The project will divert over 130 square kilometres of forest land and the felling of around 8.5 lakh trees. It is also likely to affect the mangrove cover and coral reef in the area.

While the government claims that the locals will not be displaced by the project, it has said in the Parliament that the project will use about 7.114 sq. km of tribal reserve forest land, where the Shompen, a Particularly Vulnerable Tribal Group (PVTG), and the Nicobarese reside. Moreover, the detailed EIA shows that land belonging to 1761 people and 379 households will be acquired under LARR, 2013.

The Nicobarese tribe residing in the area have raised concerns about the potential infringement on their ancestral lands and disruption of their traditional way of life. As it is, many of the residents are yet to be relocated into their old habitats after they were displaced in the aftermath of the Tsunami of 2004. On 25 August 2022, the Nicobarese had [written](https://greentribunal.gov.in/sites/default/files/news\_updates/Rejoinder filed by the Applicant in Appeal 32 of 2022 (EZ) Ashish Kothari Vs. The MOEFCC & Anr.pdf) to the Lieutenant Governor requesting relocation to their pre-tsunami villages which are now falling within the proposed project sites. But despite their insistence on returning to their ancestral lands, both forest clearance and environment clearance were granted to the project in October and November 2022, respectively.

The Andaman and Nicobar administration has also not implemented the Forests Rights Act 2006 justifying it on the grounds of the existence of the Andaman and Nicobar Islands (Protection of Aboriginal Tribes) Act, 1956 (PAT56).

Under PAT56, forest land has been marked as Tribal Reserves in the island, over which local tribespeople have been given rights to use and collect resources as and when needed for their daily sustenance. By using land falling under the Tribal Reserves the proposed project will be violating the indigenous rights.

Citing violations under the Forest Rights Act (FRA), 2006, among others, the National Commission for Scheduled Tribes (NCST) has issued notice to the district authorities in Andaman and Nicobar Islands on grounds that the project will significantly affect the rights of local tribespeople and that the NCST was not consulted. 

Critics question the economic viability and sustainability of the project. They argue that the expected benefits, such as job creation and economic growth, may not outweigh the potential costs and negative impacts on the environment and local communities.

There are also concerns about inadequate consultation and lack of transparency in decision-making, leading to distrust among stakeholders. The administration has now tried to stall the entry of outsiders to the islands by denying entry to non-islanders.

The project cites the increasing presence of China as a major thrust for the project saying it will provide accessibility to the Air Force and the Navy lands located near Indira Point— India’s southernmost point.
China has constructed a deep‐water port at Chittagong, Bangladesh, and is seeking increased Naval and commercial access in the area with the Chinese Navy allowing the use of the harbours at Chittagong and access to refuelling stations for its aircraft.

A special bench of the National Green Tribunal has temporarily put the mega project on hold after a clutch of petitions appealed against the project. NGT has constituted a high-powered committee to revisit the environmental nod granted to the project. The stay is for two months until the High-Powered Committee revisits the clearance. Environmentalists have slammed the stay as being inadequate.

In July 2025, the National Commission for Scheduled Tribes (NCST) declined to entertain a Right to Information (RTI) application seeking disclosure about the impact of the Great Nicobar Island mega infrastructure project on local tribes and the relocation of villages from a tiger reserve. The NCST cited parliamentary privileges and other legal exemptions as reasons for the refusal.

Meanwhile, the MoEFCC-appointed high-powered committee (HPC) submitted a report in a sealed cover to the NGT’s six-member bench. Activist Ashish Kothari challenged the confidential status of a report which cleared the way for a trans-shipment port on the biodiverse Great Nicobar Island. The report — which hasn’t been publicly released — abruptly concluded that parts of the planned mega port no longer fell in an ecologically fragile no-development zone. However, the port’s construction could destroy coral reefs and turtle and megapod habitats.
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JP Irene Cynthia, Managing Director, Kamarajar Port Ltd, which operates the Kamarajar Port in North Chennai told The Business Line in October 2025 that the Detailed Project Report (DPR) for the Rs 1 lakh crore proposed International Container Transhipment Port (ICTP) at Galathea Bay in Great Nicobar Island, is ready.

On 27 October 2025, over 70 scholars, former bureaucrats, activists, lawyers, and environmentalists wrote an open letter to Environment Minister Bhupender Yadav, urging him to “set aside political considerations” and focus on the project’s “grave and irreversible negative implications”. Three days later, the Union government argued that it is fully aware of the project’s likely impact on the biodiversity of the surrounding areas. Additional Solicitor General Aishwarya Bhati said that the Centre has mandated conservation and monitoring programmes to run for the next three decades as the project is developed.

However, in December 2025, the Tribal Council Chairman of Little and Great Nicobar Islands wrote to the NCST, flagging “unanswered” grievances it had raised in the past on the Great Nicobar mega-infrastructure project’s impact on tribal lands and forest rights.

On 7 January 2026, members of the Council alleged that they are being pressured by the district administration to “surrender our ancestral lands” to make way for the project. Titus Peter, 1st Captain of Pulobhabi village and a member of the Council, told The Hindu, “We cannot sign a surrender document like this. It is our ancestral tribal land. We will have nothing for the future generations.” 

The conflict highlights the complex interplay between the development aspirations of India along with its defence ambitions on the one hand and environmental conservation, questions of sustainable practices and the activism surrounding the same, which needs to be balanced with the rights of its indigenous communities. Balancing these competing interests and finding a mutually beneficial solution will decide the outcome of the project.