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Critical Topics and Their Significance for the UPSC CSE Examination on September 04, 2024

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What do we know about ANIIDCO?

For Preliminary Examination:  Current events of national and international importance

For Mains Examination: GS II, III - Governance, Environment & ecology

Context:

The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) is the project proponent for the NITI Aayog-promoted ₹72,000 crore mega infrastructure project in Great Nicobar, the southernmost island in the Andaman and Nicobar archipelago

Read about:

What is Andaman and Nicobar Project?

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Key takeaways:

The Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) is leading a ₹72,000 crore infrastructure project on Great Nicobar Island, endorsed by NITI Aayog. This project includes the development of a transshipment port, a greenfield airport, a tourism and township complex, and solar and gas-powered plants. ANIIDCO, a relatively lesser-known government-backed agency based in Port Blair, has been granted approval for this significant venture.

Background of ANIIDCO:

• ANIIDCO, established on June 28, 1988, under the Companies Act, aims to sustainably utilize natural resources to support balanced and environmentally-friendly growth in the region. Its core activities, according to its website, include trading petroleum products, Indian-made foreign liquor, and milk, managing tourism resorts, and developing infrastructure for tourism and fisheries.
• Over the last three years, its average annual revenue has been ₹370 crore with profits of ₹35 crore. Given its limited experience and scope, concerns have arisen regarding its ability to handle such a high-stakes project on Great Nicobar, an ecologically sensitive area home to indigenous communities and located in a seismically active zone.
• When ANIIDCO was appointed as the project lead in July 2020, the organization lacked both an environmental policy and the human resources required to manage the project. It wasn’t until late 2022, more than two years later, that ANIIDCO began recruiting experts in urban planning, environmental management, and other relevant fields.
• In May 2021, the Expert Appraisal Committee (EAC) under the Union Ministry of Environment raised several concerns regarding ANIIDCO’s internal environmental governance.
• The EAC questioned whether the corporation had a corporate environmental policy approved by its board, an administrative structure to ensure environmental compliance, and standard operating procedures to address violations. ANIIDCO later admitted that it had no such policy in place, yet the EAC still granted environmental clearance in November 2022.

Conflicts of Interest:

• In 2022, the Mumbai-based Conservation Action Trust filed a petition with the National Green Tribunal, challenging the forest clearance granted to ANIIDCO. The petition highlighted a potential conflict of interest, noting that the corporation's managing director was also the Commissioner-cum-Secretary of Environment and Forests at the time the clearance was issued.
• This situation led to accusations of the project proponent essentially approving its own project. Additionally, the Chief Secretary, who chairs ANIIDCO's board, was appointed to the high-powered committee investigating complaints against the project, raising further concerns about self-evaluation.
• Many emp