Published on
August 19, 2025
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.
A Portfolio Crafted for Strategic Diversification
Spearheading the portfolio is the pioneering development on Aves Island. The tender outlines a ₹36 crore, 50-room luxury resort on a 2.75-hectare leasehold. This project is a true “blue-ocean” opportunity, offering the winning bidder a first-mover advantage to establish a flagship property in an uncontested market. Aves Island, with its untouched coral reefs and secluded beaches, is positioned to become an iconic destination for the global elite, capable of commanding premium yields and setting a new benchmark for sustainable luxury in the region.
To balance this high-reward greenfield project, the portfolio is diversified with sites offering different risk and market profiles:
- Neil Island (Shaheed Dweep): This site represents a stable, cash-flow positive anchor for the portfolio. With existing infrastructure and a proven tourist inflow, it allows an operator to tap into a reliable market for faster returns and operational scale.
- Long Island & Smith Island: These locations are designated for niche, high-margin tourism. The vision here is for low-volume, experience-driven resorts focusing on specialized activities like wellness, marine biology, or exclusive diving excursions, catering to a discerning clientele willing to pay a premium for unique, private experiences.
A Blueprint for Sustainable and Inclusive Growth
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.
The Path Forward for Investors
ANIIDCO, the nodal agency for the projects, has outlined a clear timeline for potential investors:
- Site Visits: On-location due diligence tours for interested parties are scheduled for early September.
- Bid Submission Deadline: The final date for the submission of technical and financial proposals is September 15, 2025.
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.
