NITI Aayog

Incredible Islands of India

(Holistic Development)

Key Note Presentation by CEO - NITI Aayog

Pravasi Bhartiya Kendra

August 10, 2018
 Disclaimer

The objective of this document is to provide preliminary information on the development of sustainable eco-tourism
projects in Andaman & Nicobar and Lakshadweep Islands to potential investors and other stakeholders to facilitate
their evaluation of the investing opportunity in the Project. The Union Territory of Andaman & Nicobar and
Lakshadweep respectively are hereinafter referred as the Authority. NITI Aayog is facilitating the implementation of the
Project by providing support to the respective UT Administrations.

Each recipient of this document must make its independent assessment of the Project with regard to the relevance and
adequacy of the information contained herein, and should make the investigation that it deems necessary, to determine
its interest in participating in any way in the Project. This document is not and should not be construed as a
recommendation by the Authority or NITI Aayog to participate in the bid process for the Project.

Any statements contained herein characterizing the Project, the market potential and the project economics are
statements of opinion and should not be construed to be representations or warranties. The Authority and NITI Aayog
disclaim all responsibility for any decisions based on the contents of this document.

This disclaimer does not purport to include any warranties implied by law, which may not be lawfully excluded.

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 Foreword by CEO - NITI Aayog

The global tourism scenario is changing rapidly. Given the unfolding scenario and
Amitabh Kant
opportunities, I have no doubt in my mind that tourism in the country can be one of the
CEO – NITI Aayog biggest drivers of growth and a major employment generator. I also believe that the
private sector can play a pivotal role in tourism related projects and in creating a range
of new experience for the travellers.
India has a total of 1,382 off-shore identified islands. The development potential of
these islands and maritime resources has been accorded high priority. The
Government has constituted Island Development Agency (IDA) an apex body, under
the chairmanship of Hon’ble Home Minister, in June 2017, which has mandated NITI
Aayog to steer the Holistic Development of Islands program.
I would like to thank and acknowledge the continuous support provided by the Lt.
Governor of Andaman & Nicobar, Admiral D.K Joshi and Administrator of
Lakshadweep Islands, Shri Farooq Khan towards the preparation of these projects.
NITI Aayog, Ministry of Home Affairs and the UT Administrations, along with other
agencies of Government of India shall fully endeavour for successful development of
these projects. I am therefore pleased to invite you all to have an insight into the
proposed contours of the project and assess them as investment opportunities.

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Glimpses from the Event

4
Agenda

India’s Maritime Potential

The Opportunity

Transaction Structure

5
 India’s Maritime Potential
Massive and Unexplored

Tourist arrivals
7516 Coastline ~5 to islands in
km of India lakh 2017

23 lakh EEZ of Unexplored

km2 India ~600 territories

Goa

Tourism
Offshore spending
1382 islands &
1.3 impact on
islets times GDP
spending
Lakshadweep
Andaman &
Nicobar

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 Strategic Advantage of the Islands
Position as ‘exotic island destinations’ of the world

Lakshadweep Islands Andaman & Nicobar Islands

Proximity to established Proximity to established
tourist destination of tourist destinations of
Maldives South East Asia

To Kolkata: 2 hrs.
To Bangkok: 2 hrs.
To Dubai: 4 hrs.

To Kochi:
1 hr.
Goa To Chennai: 2 hrs.
To Phuket: 1.5 hrs.

Lakshadweep Andaman &

Nicobar
To Singapore: 3.5 hrs.
To Colombo: 1 hrs.
To Maldives: 1 hrs.

International shipping line Proximity to Malacca

Strait ~70 NM
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 Holistic and Sustainable Development of Islands

Developing basic
Carrying Capacity and support
based tourism and infrastructure to
economic activities support socio-
economic
development

Holistic
Development
of Islands
Green Energy (de- Providing fast,
dieselization), reliable and cost
Promotion of effective
Fisheries, Job v connectivity – intra
creation for Islanders & inter islands

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 Key Initiatives by the Government
Substantial ground covered, high degree of preparedness

Institutional Project Supporting Transaction

Structure Preparation Infrastructure Process

Island Development Technical studies Infrastructure projects Transaction Advisor

Agency - Apex body
taken up as Early bird appointed
Project packaging projects
NITI Aayog - Steering
Investors’
body
ü Connectivity Conference
UT Administrations - RAP requirement
for foreigners ü Power Bid documents
Concessioning
visiting A&N being finalised
authorities Islands has been ü Water
dispensed with 2 stage bid process
ANIIDCO & SPORTS -
Project Management
Agencies 9
 Project Preparation

ü Development potential ü Master Planning for ü Carrying Capacity &

of all Islands sustainable development Environmental Zoning

ü Project Structuring and Financial Feasibility ü PPP Projects identified

for implementation
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 Project Packaging – The Concession Package

Maximum number of Keys based on Carrying Capacity

Captive infra-projects to ensure Self - Sustainance

Development Standards - (LEED, GRIHA, GREEN GLOBE)

Upfront CRZ Clearance & other key approvals

Encumbrance Free Land (Government Owned)

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 Transaction Structure

Picture: Long Island, Andaman & Nicobar 12

 Transaction Structure

Ministry of Home Affairs

(MHA) Project
Concession Granting Management
Authority Agencies
Authorisations,
land
provisioning
Project Mgmt.
UT Administration Agreement
(the Authority)
NITI Aayog
Annual ANIIDCO/ SPORTS
(Steering Body) Grant of (Project Management
Concession Concession
Fee Agency)

Promoters SPV of the

Concessionaire Contract
Financiers Monitoring
DBFOT Concession
Design, Develop, Finance
and Operate
Resort & Captive
Resort/ Tourism Beach activities /
Infrastructure
facility water sports

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 Key Approvals

Approval* Authority

Coastal Regulation Zone (CRZ)

Liquor / Alcohol & Bar License

‘Consent to Establish’ & utility requirement

during construction

Approvals for tourism activities

Fixing the Carrying Capacity for tourist activities

* Subject to fulfilling extant guidelines and regulations

Critical approvals provided upfront by the Concessioning Authority with

an objective of de-risking the development period substantially

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 Roadmap Ahead

End Dec’18
Mid Oct’18
Award of
Aug’18 Shortlisting
10 Aug 18 End Sep’18 Project End Jan’19
Launch of and issue of Mid Nov’18
Investors’ Receipt of RFQ Signing of
RFQ* RFP* Site visit &
Conference applications Agreement
pre-bid
meetings

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*Subject to Requisite Approvals
 The Opportunity – Private Sector Participation

Picture: Smith Island, Andaman &Nicobar 16

 Andaman & Nicobar Islands – The Projects

Diglipur
Ross & Smith § Eco-Tourism Project Pipeline – 6 projects for
Is.
private sector participation:
Aves Is.
Mayabunder o Ready to Launch - 3 projects in Smith,
Aves, Long Island
Rangat o Under preparation :
Long Is. • 2 projects in Little Andaman
• 1 project in Neil

§ Connectivity & Infrastructure projects

Neil Is.

Port Blair § More projects being identified in Ross & Smith,

Aves, Long Island
Bus terminus

Airport

Port
§ Committee constituted for Little Andaman and
Project islands
ATR Great Nicobar to address land issues for
Little holistic development
Andaman
0 10 20 40 km
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 Lakshadweep Islands – The Projects

LAKSHADWEEP § Eco-Tourism Project Pipeline – 5

projects for private sector participation:

§ Ready to Launch
o 3 projects in Kadmat, Minicoy and
Suheli
o 2 water villa projects in Minicoy
and Suheli

§ Connectivity & Infrastructure projects

§ More projects being identified in Suheli,

Minicoy, Bangaram, Thinakkara &
Cheriyam

§ Action plans being prepared for another

five Islands – Kalpeni, Kadamat, Agatti,
Chetlat and Bitra
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 Andaman and Nicobar
1. Ready to Launch Eco-Tourism Resort Projects

Picture: Lalaji Bay, Long Island, Andaman &Nicobar 19

 Foreword by Hon'ble Lt. Governor, Andaman & Nicobar Islands

The re-constitution of Islands Development Agency in 2017 is an indicator of the intent,

vision and focus of the Government towards holistic development of our islands
Admiral D. K. Joshi territories. The identification of hitherto suppressed and under-exploited engines of
growth, i.e. our island territories and focusing on them will not only benefit the islanders
but will also contribute significantly to our overall economic profile. The A & N
Administration is the beneficiary of NITI Aayog’s professional support in furthering these
initiatives.
The focus on holistic development will foster growth of tourism in the region, invigorate
the economic potential of the islands and provide remunerable job opportunities to the
inhabitants. Eco-tourism activities sensitive to the ecology, bio-diversity and the strategic
locations of the islands are being promoted through this initiative. The government is
supporting not only tourism-based initiatives through single window-clearances and
information system, but other integrated aspects related to physical and digital
connectivity are also being addressed. The A & N Administration is working in tandem
with NITI Aayog on these initiatives and is committed to supporting the projects
vigorously to ensure their timely commissioning.
The projects are expected to usher the islands into a new era. By matching the
considerations of economic growth with sensitivity towards history and heritage, ecology,
flora and fauna of the islands, I am hopeful that a new model and benchmark will be set,
which can further be emulated and adopted.
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 Ready To Launch – Projects

Smith Island –
Smith
Treehouse / Glamping 25 Ha
Island
19.9 sq km
POPULATION- 600
70 Keys

~70 Cr
Aves
Island
0.17 sq km
POPULATION- 2

Aves Island – Glamping 2.75 Ha

50 Keys

Long
~40 Cr
Island
13.8 sq km
POPULATION-
1032

Long Island - Resort 42 Ha

220 Keys

~400 Cr

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 Ready To Launch – Resort at Lalaji Bay

Long Island Eco-tourism Resort

INR ~400 Cr

1/1 220 Keys

1/1/1

1/2
42 ha

Benchmarking Standards
GRIHA, LEED, Green Globe

Captive-Infrastructure

License and Permits for

Tourism Activities
Existing Naval Setup Long Island Landscape
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 Ready To Launch – Smith Island
Tree-house / Glamping
Smith Island
INR ~70 cr

25 ha

70 Keys

Benchmarking Standards
GRIHA, LEED, Green Globe

Captive-Infrastructure

License and Permits for

Tourism Activities
20 minutes boat ride from Diglipur Airport
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 Ready To Launch – Aves Island

Glamping

INR ~40 Cr

50 Keys 2.75 Ha

Benchmarking Standard
GRIHA, LEED, Green Globe

Aves Island License and Permits

Captive-
for Tourism
Infrastructure
Activities

• 20 minutes boat ride from Mayabunder

• Along the Portblair- Diglipur sea route
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 3 Ready To Launch projects – Current Status

• Development studies, feasibility & project structuring undertaken

• Survey and Demarcation of project areas completed

• CRZ application filed

• Transaction Advisor appointed

• Pre-qualification exercise to commence shortly

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 Andaman and Nicobar
2. Under Preparation Eco-Tourism Resort Projects

Picture: Smith Island, Andaman &Nicobar 26

 Under preparation – Resort at Neil Island

Aves Island

Benchmarking Standard 42 km from Port Blair via sea (~1.5 hrs)

9.7 Ha GRIHA, LEED, Green 16 km from Havelock Island via sea
Globe (~1 hr)

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Under preparation – Resort at Little Andaman

• Total Area – ~734 sq km

• 2 sites identified on revenue land

for eco-tourism development

Benchmarking Standard
GRIHA, LEED, Green Globe

100 km from Port Blair via sea

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 Andaman and Nicobar
3. Under Preparation Infrastructure and Connectivity Projects

Picture: Smith Island, Andaman &Nicobar

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 Under preparation
Transhipment Project, Great Nicobar

• The largest Island in A & N

(1045 sq km)
Andaman

• Close to Malacca Strait

(90 km)

• Trans-shipment terminal at
South Bay – feasibility being
explored

• A Potential Ecotourism Site

in Great Nicobar – carrying
capacity being assessed

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 Port Meadow

• STS Transhipment Hub at Port

Meadow
• Development of Marina to be explored
• All weather tranquillity to perform STS
Port
Meadow operation
• Natural depth - 50 m
• Turning circle – 2 NM
• Basin area - 66 Sq NM
• Notified as Port vide GSR 995(E) on
20th Oct 2016

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 Sea Connectivity

• Improvement of Existing Jetty in Long Island

• Ministry of Tourism to fund from its ongoing schemes
• Potential of developing Yacht Marina on PPP

Existing jetty Site

Kochi Marina

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 Roll-on/Roll-off (RoRo) Connectivity

• Roll-on/Roll-off Ferry Project on PPP

DIGLIP
ROSS &
SMITH Is.
Mode to boost sea connectivity
UR AERIAL BAY JETTY

• NITI Aayog finalizing:

MAYABUNDE
R JETTY
AVES Is. • Techno-Economic Feasibility
MAYABU
NDER
• Revenue Model
RAN
GAT • Concession Agreement
LONG Is.

HAVEL
OCK Is.

NEIL Is.

PORT
BLAIR

Ro-Ro Service in Gujarat

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 Road Connectivity

• Andaman Trunk Road (ATR) - an

important road - connects Port Blair to
Smith
Island
Middle and North Andaman

• NH-4 upgradation has been included in the

Aves early bird project
Island

• Construction of Humphrey Strait Bridge

Andaman
Trunk Road started
(ATR)
Long
Island
• Middle Strait Bridge – Review application
for CRZ clearance filed before NGT

• Agreed by Ministry, Clearance from NGT

being taken

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 Air Connectivity

• Diglipur Airport to be made operational for civilian aircrafts by

December, 2018

• Port Blair, Car Nicobar, Campbell Bay and Diglipur Airports to

form an Air Circuit

• Diglipur, Car Nicobar and Campbell Bay airports are also

included in Regional Connectivity Scheme (UDAN)

• Reviving Sea Plane Operations under UDAN Scheme

• Water drome locations has been identified at Diglipur and

Mayabunder.
• In 2nd Phase Smith, Long and Neil Islands are under
consideration

• Existing helipads (17 Nos.) to promote Heli-Tourism

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 Digital Connectivity & Green Energy

Digital Connectivity Promotion of Green Energy

• Augmentation of satellite bandwidth from • Augmenting power generation - using

1.118 Gbps to 2.7 Gbps to be completed diesel not desirable
by Dec., 2018
• A Roadmap put in place for promotion of
• Under Sea OFC awarded, to be renewable energy
completed by Dec., 2019
• MoUs signed with NLC India Ltd. and
• Promotion of IT - based MSMEs can be NTPC Ltd. for 45MW Renewable
taken up Energy projects

• Incentives as contained in Industrial Policy • Feasibility assessment for Solar Projects (

for North East (NEIDS, 2017) could be 11.5 MW each in Long and Smith Island,
extended to both A&N and Lakshadweep 0.8 MW in Aves Island ) completed –
MNRE to support UT Administration in
project implementation

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 Lakshadweep
1. Ready to Launch Eco-Tourism Resort Projects

Picture: Minicoy Island, Lakshadweep 37

Ready To Launch – Projects

Kadmat - Resort 5.5 Ha

50 Keys

~90 Cr

Suheli – Resort & 3.2 Ha

Water Villas* 44 Keys + 44 Villas

~80 Cr*

Minicoy - Resort & 1.7 Ha

Water Villas* 38 Keys + 32 Villas

~65 Cr*

* Water Villas – Being reviewed, 38

cost estimates not available
 Ready To Launch – Resort & Villas at Minicoy

1.7 ha

38 Keys

32 Villas*

65 Cr*

* Water Villas – Being reviewed,

cost estimates not available

Benchmarking
Standard
GRIHA, LEED, Green
Globe

Captive-Infrastructure

License and Permits

• 2 hours Helicopter ride from Agatti Airport
for Tourism Activities
• Shipping Service from Kochi
39
• 66 nm from Maldives
 Ready To Launch – Resort & Villas at Suheli

3.2 Ha
44 Keys

44 Villas*

80 Cr*

Site for Resort * Water Villas – Being

reviewed, cost estimates
Additional Site for resort not available
– land issues being
resolved
Benchmarking
Identified Location Standard
for Water Villa GRIHA, LEED,
Green Globe
License and
Permits for Tourism
Captive-
Activities
Infrastructure

• 20 minutes Helicopter ride from Agatti Airport

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 Island Water Villas

• Proposal agreed by MoEF & CC for implementation on a pilot basis

• Guidelines / Criteria for Island Water Villas formulated

Illustrative Image
41
 Ready To Launch - Resort at Kadmat

5.5 Ha
50 Keys

~ INR 90 Cr

Benchmarking
Standard
GRIHA, LEED,
Green Globe

Captive-
Infrastructure

License and
SPORTS operates Permits for
existing resort at Tourism Activities
Kadmat
• 20 minutes Helicopter ride from Agatti Airport
• Shipping Service from Mangalore and Kochi 42
 Ready To Launch Projects – Current Status

• Survey and Demarcation of project areas completed

• Transaction Advisor appointed

• CRZ application – To be filed

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 Lakshadweep
2. Under Preparation Eco-Tourism Resort Projects

Picture: Suheli Island, Lakshadweep 44

 Additional Eco-Tourism Projects

Beach-side Cottages at Minicoy Redevelopment & Extension of Resort at Minicoy

(43 Keys; 6.9 ha; 65 cr) Bangaram Resort (66 Keys; 15.6 ha; 100 cr)
(114 Keys; 15.2 ha; 175 cr)

Redevelopment & Extension of

Resort at Suheli Resort at Cheriyam
Tourist Huts at Thinakkara
(30 Keys; 4.1 ha; 45 cr) (100 Keys; 35.2 ha; 160 cr)
(102 Keys; 15.6 ha; 150 cr)

Committee constituted for devising a model for Islanders’ participation in the projects, island visits
undertaken, report expected soon. 45
 Lakshadweep
3. Under Preparation Infrastructure and Connectivity Projects

46
Picture: Minicoy Island, Lakshadweep
 Air and Sea Connectivity

Air Connectivity Sea Connectivity

Kavaratti Jetty

• Minicoy Island, strategically located • Kavaratti Jetty being modernized

• Airport at Minicoy • Concept Note being prepared by Indian Navy
• IAF to construct the Airport
• Existing Agatti Airport being expanded
• Sea Plane Connectivity – Feasibility completed
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 Promotion of Fisheries and Green Energy

Promotion of Fisheries Promotion of Green Energy

• Huge Potential for Tuna Fishing in Minicoy Feasibility assessment for Solar Projects
Island completed -

• Feasibility study for sustainable utilization of

Bangaram

Thinakara
Cheriyam
Minicoy

Kadmat
existing potential carried out

Suheli
• 10 Modern Shipping Vessels Islands
proposed
• Development of Tuna Processing
Plant through PPP
Capacity
• Promotion of “Lakshadweep Tuna” 5 1.1 2 1.4 1.5 0.84
(MW)
as a brand for international marketing

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THANK YOU

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