Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO)

September 6, 2024

The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) is managing a massive ₹72,000 crore infrastructure project on Great Nicobar Island. This includes building a large trans-shipment port, an airport, tourist facilities, and solar and gas power plants. While this project promises to boost development, it has raised concerns about environmental protection and whether ANIIDCO, a relatively unknown government agency, is equipped to handle such a large undertaking.

What is ANIIDCO?

ANIIDCO has been playing a vital role in promoting economic development in the Andaman and Nicobar Islands since its establishment in 1978. The agency focuses on sectors like tourism, agriculture, and fisheries. It also runs several eco-tourism projects aimed at preserving the unique environment of the islands. By supporting local businesses and sustainable development, ANIIDCO contributes significantly to the region’s economy while working to protect its natural beauty.

Financial Performance

In the last three years, ANIIDCO has made an average annual revenue of ₹370 crore and a profit of ₹35 crore. Many people are questioning whether the agency can handle a project as large and complex as this one, given its relatively modest financial track record.

Concerns About Capability

When ANIIDCO was chosen to lead this project in July 2020, it did not have a clear environmental policy or enough skilled workers to handle the project. It only started hiring specialists in late 2022, revealing a significant delay between the start of the project and the agency’s readiness to execute it properly.

Environmental Oversight Issues

In May 2021, the Expert Appraisal Committee (EAC) raised questions about ANIIDCO’s ability to manage environmental responsibilities. Even though ANIIDCO admitted it did not have an environmental policy, the EAC still approved its request for environmental clearance in November 2022. This has raised concerns about whether proper oversight was conducted.

Conflict of Interest Concerns

There have been allegations that ANIIDCO is self-certifying its environmental assessments because the agency’s managing director was also the Secretary for Environment and Forests at the time. This overlap of roles has led to worries about potential conflicts of interest, which could affect the fairness of the environmental reviews.

Historical Perspectives

Some past administrators have expressed doubts about ANIIDCO’s ability to manage such a huge project. Lt Gen A.K. Singh acknowledged ANIIDCO’s potential but insisted that outside experts should be brought in to help. Similarly, former Chief Secretary Sanat Kaul suggested that the entire organisation needed to be restructured to be more effective in handling large-scale development projects.

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