Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO)

Context: The qualifications of the Andaman and Nicobar Islands Integrated Development Corporation come into question after it got permission to do a ₹72,000 crore mega infrastructure project in Great Nicobar

Overview of ANIIDCO

• Background (Andaman and Nicobar Islands Integrated Development Corporation)
  • Incorporation Date: June 28, 1988, under the Companies Act.
  • Objective: To develop and commercially exploit natural resources for balanced and environment-friendly development of the territory.
  • Main Activities:
    • Trading of petroleum products, Indian-made foreign liquor, and milk.
    • Managing tourism resorts.
    • Infrastructure development for tourism and fisheries.
• Current Major Project
  • Project: ₹72,000 crore mega infrastructure project in Great Nicobar.
  • Components:
    • Trans-shipment port.
    • Greenfield airport.
    • Tourism and township project.
    • Solar and gas-based power plant.
• Concerns and Issues
  • Qualifications: ANIIDCO’s mandate, history, structure, and capabilities raise concerns about its suitability for such a high-profile project.
  • Environmental Governance:
    • Initial Status: ANIIDCO did not have an environment policy or an environment cell when appointed as project proponent in July 2020.
    • Human Resources: Lacked the necessary expertise and human resources initially. Began recruiting relevant experts only in late 2022.
    • Expert Appraisal Committee (EAC) Concerns:
      • EAC asked if ANIIDCO had a corporate environment policy, an administrative system for environmental compliance, and standard operating procedures for environmental and forest violations.
      • ANIIDCO admitted in August 2021 that it did not have an environment policy.
      • Despite this, the EAC granted environmental clearance in November 2022.
• Conflicts of Interest
  • Forest Clearance Issue:
    • In 2022, Conservation Action Trust filed a petition before the National Green Tribunal challenging Stage 1 forest clearance.
    • The petition highlighted that the managing director of ANIIDCO was also the Commissioner cum Secretary (Environment and Forests), creating a conflict of interest as ANIIDCO was essentially certifying its own project.
  • Evaluation and Oversight:
    • Chief Secretary of the islands, also chairman of ANIIDCO’s board of directors, was involved in evaluating the project and addressing complaints, which raised concerns about self-evaluation.
    • Numerous ANIIDCO staff are also civil servants handling environmental and tribal welfare issues.
• Past Administrators' Views
  • Lt Gen A.K. Singh (Lieutenant Governor 2013-16):
    • Suggested that ANIIDCO would be better suited than other departments but emphasized the need for expert agencies from outside the islands.
  • Sanat Kaul (Chief Secretary in early 90s):
    • Criticized ANIIDCO’s tourism operations in a 2015 book.
    • Expressed doubt about ANIIDCO's ability to manage the ₹72,000 crore project without significant upgrades and improved staff.

Conclusion

• ANIIDCO, a quasi-government agency based in Port Blair, is tasked with overseeing a significant infrastructure project in Great Nicobar.
• It initially lacked necessary environmental policies and expertise.
• Concerns about conflicts of interest and governance issues have been raised regarding its role in the project.