Centre invites global investors for development of Lakshadweep, Andaman and Nicobar Islands

The Modi government is inviting global investors for social and infrastructural development programme in the islands of Andaman and Nicobar and Lakshadweep. The government will hold a pre-bid meeting with potential investors on August 10 in order to make the terms more accommodative, a person in the know said, as mentioned in a report in Livemint. It must be mentioned that with its trade and surveillance potential Andaman and Nicobar Islands are of great maritime importance to India.

A transhipment terminal at Campbell Bay at Great Nicobar is one of the key projects among the 10 programmes identified by the government. These projects are part of the Centre's island development plan prepared by government's policy think tank NITI Aayog. The projects for which EoIs are sought are wide-ranging including areas such as road, sea and air connectivity, digital connectivity, healthcare, education, clean energy and development of resorts.

Experts believe this is a beneficial step for the islands. Former naval chief, Admiral Arun Prakash said that while Andaman and Nicobar Islands have huge natural resources, the same never got developed because of opposition from environmentalists. He also said that India should be developing these islands for tourists and other potential projects. Malaysia, Indonesia as well as the Chinese have been developing their islands and India should too, he said.

There are 572 islands in the territory but only a few are inhabited.

The report also said that NITI Aayog is planning to draw up a revenue model for building sea connectivity projects in public-private partnership mode, especially for automobile-carrying ships. Also part of the plan is proposals for resorts at the islands of Minicoy, Suheli and Kadmat at Lakshadweep. Investors who are already present in the islands will be encouraged to participate in the projects along with non-resident Indians (NRIs). Development of water desalination plants and waste management are also part of the development plans.

Plans to boost air connectivity and to promote helicopter tourism are already underway. An agency called the Island Development Agency to develop the maritime economy was set up in June that has been working with NITI Aayog.

The development plan also seeks to extend the benefits of these programmes to businesses in the Northeast. These benefits include subsidy on capital investment and interest on working capital loans and reimbursement of the central government's share of GST.

(Edited by Anwesha Madhukalya)