The Andaman and Nicobar Islands administration has launched a landmark initiative to attract private capital into its high-potential tourism sector, floating a global tender for a curated portfolio of eco-resort projects. This strategic push is designed to create a new, world-class sustainable tourism circuit across four key islands, including the pristine, previously inaccessible Aves Island. The move is a cornerstone of India’s national strategy to develop its island territories into premier global destinations, balancing economic growth with stringent ecological preservation.
Central to this initiative is the adoption of a Public-Private Partnership (PPP) framework, specifically a Design, Build, Finance, Operate, and Transfer (DBFOT) model. This structure offers a stable, long-term concession that minimizes risk for private investors while allowing the government to leverage their capital, innovation, and operational expertise. For hospitality majors, it presents a rare opportunity to enter a protected market with significant government backing and a clear, predictable revenue path.
Early market reception points to significant investor appetite. A pre-bid conference on August 14 was attended by a roster of industry titans, including senior teams from IHCL (Taj Hotels), Hyatt, Club Mahindra, and The Leela. This robust participation is a clear signal of strong market confidence in the administration’s vision, the inherent value of the assets, and the appeal of the well-structured investment model.
To balance this high-reward greenfield project, the portfolio is diversified with sites offering different risk and market profiles:
The administration has made it clear that this initiative is as much about conservation as it is about commerce. The tender documents feature robust Environmental, Social, and Governance (ESG) mandates. Bidders will be evaluated on their plans for renewable energy, waste management, water conservation, local employment, and community engagement. This approach aims to create a holistic development model where the resorts contribute directly to the local economy and act as custodians of the natural environment.
ANIIDCO, the nodal agency for the projects, has outlined a clear timeline for potential investors:
Ultimately, this initiative is more than a call for investment; it is a meticulously planned blueprint to position the Andaman and Nicobar Islands at the forefront of global ecotourism. Its success is poised to create a powerful template for sustainable development in ecologically sensitive regions worldwide.
