What do we know about ANIIDCO?

• The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) has been entrusted with overseeing the ₹72,000 crore mega infrastructure project in Great Nicobar, a significant initiative backed by NITI Aayog.
• This ambitious project involves the construction of a trans-shipment port, a greenfield airport, a tourism and township project, and a solar and gas-based power plant.
• Despite its strategic location and economic potential, the project faces severe scrutiny due to ANIIDCO's lack of experience in managing such large-scale ventures and concerns over environmental impacts.

ANIIDCO: An Unlikely Choice for a Mega Project?:

• Established in 1988, ANIIDCO’s primary mandate has been the balanced and environment-friendly development of the Andaman and Nicobar Islands through resource management.
• Historically, the corporation’s activities have included petroleum and liquor trading, tourism management, and fisheries development. With an annual turnover of ₹370 crore and an average profit of ₹35 crore over the past three years, ANIIDCO is a relatively small player.
• Its portfolio, largely limited to local commercial ventures, raises serious concerns about its capacity to handle a ₹72,000 crore project involving complex infrastructure and environmental challenges.
• At the time of its appointment as project proponent in July 2020, ANIIDCO lacked crucial environmental governance structures.
• It did not have an environmental policy, nor did it possess the necessary human resources to oversee a project of such magnitude. Only in late 2022, two years after being tasked with the project, did ANIIDCO begin the process of recruiting specialists in urban planning, environmental management, and infrastructure development.
• The Expert Appraisal Committee (EAC), which granted environmental clearance despite these shortcomings, raised critical questions about ANIIDCO’s ability to comply with environmental regulations.

Conflicts of Interest and Governance Issues:

• One of the most contentious aspects of the project is the conflict of interest surrounding ANIIDCO’s leadership and governance.
• For example, when the Union Environment Ministry granted Stage 1 forest clearance, the Managing Director of ANIIDCO also served as the Commissioner cum Secretary of Environment and Forests for the islands.
• This raised concerns of self-certification, where the project proponent was also the authority responsible for compliance with environmental conditions.
• Additionally, the Chief Secretary of the islands, who is the chairman of ANIIDCO’s board, was involved in a committee set up by the National Green Tribunal (NGT) to evaluate complaints against the project, further consolidating decision-making power within the same administrative body.
• This overlap between project oversight and regulatory authority undermines the credibility of the environmental and social assessments associated with the project, especially given that Great Nicobar is a biodiversity hotspot and home to vulnerable indigenous communities.
• The potential impacts of the project on these communities, and the island’s fragile ecosystem, are serious concerns that have yet to be adequately addressed.

The Environmental and Social Risks:

• Great Nicobar is not only known for its unique biodiversity but also for its tectonic instability.
• The risks of building large-scale infrastructure in such an environment include the potential for irreversible damage to ecosystems and increased vulnerability to natural disasters. Furthermore, the project threatens the rights of indigenous tribes, who have a constitutionally protected status in the region.
• Despite these risks, the EAC granted environmental clearance to ANIIDCO in November 2022, raising questions about the robustness of the environmental review process.
• The project’s opponents, including the Conservation Action Trust, have argued that the forest clearance process lacked transparency and independence.
• These concerns were formally raised before the NGT, which remains a key battleground for environmental and social justice advocates.

Expert Opinions and Future Prospects:

• Former administrators of the Andaman and Nicobar Islands have expressed mixed views on ANIIDCO’s capacity to manage such a complex project. While Lt. Gen. A.K. Singh, a former Lieutenant Governor, believes that ANIIDCO is the best-suited local agency for the project; he also emphasizes the need for external expert agencies to ensure its success.
• On the other hand, Sanat Kaul, a former Chief Secretary of the islands, has been more critical, suggesting that ANIIDCO would require a complete overhaul and a significant upgrade in its capabilities to manage a project of this scale.

Conclusion:

• The ₹72,000 crore Great Nicobar mega project, while economically promising, is fraught with challenges related to governance, environmental impact, and social justice.
• ANIIDCO’s limited experience and the conflicts of interest surrounding its role as the project proponent raise valid concerns about the project’s long-term sustainability. Moreover, the lack of a transparent and independent environmental assessment process threatens the island’s unique ecosystem and the rights of its indigenous people.