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GS III · Environment & InfrastructureSaturday, 6 June 2026· Environment / Governance / Infrastructure

Nicobar project

Why it matters for UPSC

The Nicobar project touches multiple exam-relevant dimensions: oversight by the Public Investment Board (PIB) and whether government can bypass its observations raises governance and accountability concerns. The ecological sensitivity of Great Nicobar Island (UNESCO Biosphere Reserve, Leatherback turtle nesting site) makes it relevant to Environment GS III. The displacement concerns for the Shompen tribe connect to GS II (vulnerable tribal groups and their rights). The 'strategic objectives' debate links to India's Indo-Pacific strategy and Andaman & Nicobar Command.

Key facts

  • The Galathea Bay project on Great Nicobar Island is a mega-infrastructure project including a transshipment port, township, airport, and power plant.
  • The Public Investment Board (PIB), under the Ministry of Finance, observed that the project lacks clearly defined 'strategic objectives'.
  • The government chose to proceed with the project despite PIB's reservations, raising accountability concerns.
  • Great Nicobar Island is a UNESCO-designated Biosphere Reserve and a critical nesting site for the Giant Leatherback Sea Turtle.
  • The project area is home to the Shompen — a Particularly Vulnerable Tribal Group (PVTG) with an estimated population of around 200-300.
  • The project is being developed by the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO).

The article discusses the controversy surrounding the Nicobar's Galathea Bay project and how the government has chosen to ignore the Public Investment Board's observation that the project lacks 'strategic objectives'.

Concepts to know

Public Investment Board (PIB)institution

An inter-ministerial body under the Ministry of Finance that appraises large public investment projects (typically above ₹1,000 crore) for financial viability and strategic rationale before Cabinet approval. Its observations are advisory but carry significant weight in governance accountability.

Particularly Vulnerable Tribal Groups (PVTGs)term

PVTGs are the most marginalised tribal communities identified by the government on criteria such as pre-agricultural technology, declining/stagnant population, and very low literacy. The Nicobarese are classified as PVTGs, entitling them to special protective measures and welfare schemes.

Forest (Conservation) Act, 1980act

Requires prior approval of the Central Government for diversion of forest land for non-forest purposes. Large-scale diversion of forest land in Great Nicobar for this project required clearance under this Act, which became highly controversial.

Environment Impact Assessment (EIA)term

A mandatory process under the Environment Protection Act, 1986, to assess the potential environmental consequences of a proposed project before approval. Critics have argued the EIA for the Nicobar project was inadequate given its ecological sensitivity.

Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO)institution

The nodal agency implementing the Great Nicobar project. It is a government undertaking under the Union Territory administration tasked with the holistic development of the Andaman and Nicobar archipelago.

UNESCO Biosphere Reserveterm

Sites designated by UNESCO under the Man and Biosphere (MAB) Programme for conserving biodiversity and demonstrating sustainable development. Great Nicobar is one such reserve, making large-scale infrastructure development within it globally controversial.

Linked previous-year questions

The UPSC questions this story connects to.

  1. With reference to the Public Sector Undertakings in India, consider the following statements: 1. Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country 2. Project and Equipment Corporation of India Limited is under the Ministry of Industry 3. One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities Which of these statements is/are correct? (a) 1 only (b) 1 and 2 (c) 2 and 3 (d) 3 only

    • a.1 only
    • b.1 and 2
    • c.2 and 3
    • d.3 only
    Economy · UPSC 2002
  2. Consider the following statements: 1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India. 2. One of the tasks of PNGRB is to ensure competitive markets for gas. 3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

    • a.1 and 2 only
    • b.2 and 3 only
    • c.1 and 3 only
    • d.1, 2 and 3
    Economy · UPSC 2019
  3. Consider the following statements regarding environmental issues in India : (a) Gulf of Mannar is one of the biosphere reserves (b) The Ganga Action Plan, phase II has been merged with the National River Conservation Plan. (c) The National Museum of Natural History at New Delhi imparts non-formal education in environment and conservation. (d) Environmental Information System (ENVIS) acts as a decentralized information network for environment information. Which of these statements are correct? (a) 1, 2 and 4 (b) 1, 2, 3 and 4 (c) 2 and 3 (d) 1, 3 and 4

    • a.1, 2 and 4
    • b.1, 2, 3 and 4
    • c.2 and 3
    • d.1, 3 and 4
    Environment · UPSC 2001
  4. With reference to Bombay Natural History Society (BNHS), consider the following statements: 1. It is an autonomous organisation under the Ministry of Environment and Forests. 2. It strives to conserve nature through action-based research, education and public awareness. 3. It organises and conducts nature trails and camps for the general public. Which of the statements given above is/are correct? (a) 1 and 3 only (b) 2 only (c) 2 and 3 only (d) 1, 2 and 3

    • a.1 and 3 only
    • b.2 only
    • c.2 and 3 only
    • d.1, 2 and 3
    Environment · UPSC 2014
  5. Consider the following statements : 1. Petronet LNG Ltd. is setting up another LNG terminal at Mangalore. 2. The Head Office of the Dredging Corporation of India is at Visakhapatnam. 3. The Narwapahar Mine is operated by the Uranium Corporation of India Limited. Which of the statements given above are correct? (a) 1, 2 and 3 (b) 1 and 2 only (c) 2 and 3 only (d) 1 and 3 only

    • a.1, 2 and 3
    • b.1 and 2 only
    • c.2 and 3 only
    • d.1 and 3 only
    Geography · UPSC 2006
  6. With reference to Indian Ocean Rim Association for Regional Cooperation (IOR-ARC), consider the following statements: 1. It was established very recently in response to incidents of piracy and accidents of oil spills. 2. It is an alliance meant for maritime security only. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

    • a.1 only
    • b.2 only
    • c.Both 1 and 2
    • d.Neither 1 nor 2
    International Relations · UPSC 2015

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