Island Development Project

Prelims level : Governance: Schemes Mains level : GS 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
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  • Seven islands in the Andamans and Lakshadweep have been identified for seaplane operations while private sector participation has been invited for tourism-based projects in the two archipelagos.


  • The 5th meeting of the Island Development Agency(IDA), chaired by Home Minister Rajnath Singh, also reviewed the progress made towards the program “Holistic development of islands”.
  • Four islands (Swaraj Dweep, Shaheed Dweep, Hutbay and Long) in Andaman and Nicobar Islands and three islands (Kavaratti, Agatti and Minicoy) in Lakshadweep have been identified for seaplane operations.
  • Key infrastructure projects such as operationalisation of Diglipur airport for civilian aircraft and construction of a new airport in Minicoy Island have been accorded high priority by the government while Coastal Regulation Zone (CRZ) clearance has been accorded for ‘Middle Strait Bridge’ on Andaman Trunk Road. All these measures will improve inter-island connectivity significantly.
  • Bids for private sector participation in three tourism-based projects have already been invited by the Andaman & Nicobar Administration. They include eco-tourism projects in Smith Island & Long Island and tent city project in Aves island.
  • Bids will be invited shortly for one more project in Neil island of Andaman & Nicobar. Three projects in Lakshadweep have been identified for the issue of bids.
  • These include tourism projects in the islands of Kadmat, Minicoy and Suheli Cheriyakara. Environmental Clearance (EC), CRZ clearance and all other clearances required for these projects are being obtained upfront, on priority, to attract number of reputed bidders.

Other Initiatives:

  • The Ministry of Commerce has issued a notification extending tax incentives for investments made in manufacturing and service sector in islands of Andaman and Nicobar and Lakshadweep.
  • The tax incentives are Central Capital Investment Incentive for access to credit (CCIIAC), Central Interest Incentive (CII), Central Comprehensive Insurance Incentive (CCII), Goods and Services Tax (GST) reimbursement, Income Tax (IT) reimbursement, Transport Incentive (TI) and Employment incentive (EI).
  • Expeditious implementation of the above-mentioned projects will provide a high economic return to the private sector, satisfactory jobs and additional income to the Islanders and enhanced revenue to the government – a win-win situation for all.
  • Above all, the stability of the island eco-system will be maintained with effective execution of well-planned environmental safeguards.
  • A detailed presentation was made by CEO, NITI Aayoghighlighting the current status of planned projects being implemented for islanders’ benefits. The status of the implementation of decisions taken in the last meeting was also highlighted in the presentation.
  • In order to sustainably utilise the potential of Tuna fish, ten deep-sea modern fishing vessels are being procured by Lakshadweep administration from Cochin Shipyard Limited.
  • Export of seafood and coconut products is being encouraged to generate more employment opportunities in the islands.
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