Paper: GS – III, Subject: Indian Economy, Topic: Infrastructure, Issue: The Great Nicobar Project.
Context:
The proposed mega port at Great Nicobar’s Galathea Bay faces flawed economic, logistical, and environmental justifications, making it an overstated and unrealistic development project.
Key Highlights:
The Proposed Project and Its Scope:
- The Government of India’s plan involves: A mega transshipment port at Galathea Bay to position India as a regional maritime hub rivalling Singapore.
- An international airport to improve connectivity.
- A power plant to ensure self-sufficiency.
- A new township and industrial hub to accommodate up to 3 lakh people in the long term.
While the strategic motive enhancing India’s influence in the Indian Ocean — is valid, the ecological and social costs appear disproportionate.
Ecological Significance of Great Nicobar:
- Hosts unique species like Nicobar megapode, Nicobar macaque, Nicobar tree shrew, and largest leatherback turtle nesting sites.
- Tropical rainforests store large carbon stocks crucial for global climate regulation.
- Part of Sundaland Biodiversity Hotspot, noted for exceptional species endemism by IUCN.
- Coral reefs, seagrass meadows, and mangroves provide natural protection against cyclones, tsunamis, and coastal erosion.
- Loss of these ecosystems threatens climate stability, marine productivity, and local livelihoods.
Weak Logistics and Cost Structure:
- Shipping Industry Realities: Major carriers are reluctant to disrupt established trade routes at Colombo or Singapore.
- These foreign ports offer rebates, efficiency, and integrated logistics, making them more attractive.
- Indian ports often have higher handling and port-calling costs.
Case Studies:
- Krishnapatnam Port (Andhra Pradesh): Lost container operations in 2024 and reverted to bulk cargo showing how cost inefficiency deters shipping lines.
- Vizhinjam Port: Despite early success (500 ship calls), most traffic came from a single company (MSC), which also holds a stake in the port highlighting dependence on a single partner.
Unrealistic Integration Claims and Impacts of Galathea Bay Project:
The Great Nicobar port project, though ambitious, is economically and logistically unviable. Lacking industry, connectivity, and safeguards, it risks becoming an unsustainable, costly misadventure.
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