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Three Hospitality Groups Win Bid to Build Luxury Resorts in Andamans

Andaman administration has cleared four eco-friendly luxury resorts on PPP mode, opening Aves Island to tourism, with green designs, renewable energy, and long-term revenue sharing.

BY Realty+
Published - Tuesday, 16 Dec, 2025
Three Hospitality Groups Win Bid to Build Luxury Resorts in Andamans

Three well-known hospitality groups have won bids to build luxury eco-friendly tourism resorts at Long Island, Aves Island and Shaheed Dweep (Neil Island) in Andaman and Nicobar Islands, an official said.

Another group has won the bid to develop the existing Megapode Resort in Sri Vijaya Purma on a PPP mode, the official said.

The Andaman and Nicobar Islands Integrated Development Corporation Limited (ANIIDCO) has finalised three applications to design, build, finance, operate, transfer (DBFOT) of 5-star eco-tourism resorts on PPP basis at these exotic locations, the official said.

"In a major stride toward sustainable tourism-led growth, we have finalised successful tenders for four flagship eco-tourism projects across the Islands. Three hospitality groups/investors have won the bid to build three luxury eco-friendly tourism resorts at Long Island, Aves Island and Shaheed Dweep. Letters of Award for the development of eco-tourism resorts have been issued. We also got one of the highest bidder to develop the existing Megapode Resort in Sri Vijaya Puram on PPP mode," an official said.
"In addition to the annual concession fee, concessionaires will share revenue at the rates of 3.6 per cent for Megapode Resort, 3 per cent for Shaheed Dweep, and 2 per cent each for Long Island and Aves Island. The concession period is 50 years for Megapode Resort and 75 years for the other projects, including construction time," he said.

"Our aim is the archipelago as a premier global destination for responsible, nature-centric tourism. These projects are designed to meet international sustainability standards, including LEED, GRIHA, and Green Globe certifications, and comply fully with Coastal Regulation Zone (CRZ) and environmental norms," he said.

Emphasizing low-impact design, each resort will operate on self-sustaining systems powered primarily by renewable energy, including solar installations, ensuring minimal ecological footprint and seamless integration with the Islands' natural landscapes.

Out of four locations, Aves Island is an uninhabited Island, and this is probably the first time in decades that the local administration has decided to open such an uninhabited Island to promote tourism.

The Aves is a small and beautiful Island, also known as Coconut Island for its lush green coconut plantation. Presently, Aves is not open for tourists. It is an uninhabited Island with no accommodation facilities, but with the proposed five-star eco-tourism resort, Aves will be the most sought-after tourist destination after Swaraj Dweep (Havelock Island) in Andaman.

With an investment of nearly Rs 36 crore, the five-star eco-tourism resort (2.75 hectare) at Aves Island will have 50 rooms where the concessionaire can undertake various activities like a shopping area for local souvenirs, scuba diving, game fishing, forest trekking, nature camping, wellness centre, etc.

Apart from Aves, the resort at Long Island (total project cost of five five-star eco-tourism resort will be approximately Rs. 391 crore) will have a maximum of 220 rooms, while Shaheed Dweep (total project cost will be approximately Rs. 172 crore) will have a total of 120 rooms.

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