Cost Of The Project

The rail line will be built with Rs 2,413.68 crore with a negative rate of return on investment of -9.64%. Though a rail line is considered commercially viable if it is at least a positive of 12% yet Railways has approved the plan due to its “uniqueness and strategic importance”, as per documents reviewed by The Indian Express.

Andaman__Nicobar_Island_To_Get_Its_First_Railway_Route-Image

Planning and Finance directorates of Railways said that the project “is unique, away from the mainland, and has tourism potential.”

Boon For Tourism

Quite naturally, the rail line is expected to promote the tourism of the islands as it will increase the inflow of tourists.

“As soon as the line is commissioned, tourism will see a jump from the current 4.5 lakh visitors a year to around 6 lakh a year, as per our estimates. So even though the railway survey shows a negative return, our assessment is otherwise. However, we have agreed to share the operational losses, if any,” Lieutenant Governor of Andaman and Nicobar Islands Jagdish Mukhi told The Indian Express.

Andaman__Nicobar_Island_To_Get_Its_First_Railway_Route-image

The Ross and Smith islands are the major tourist attractions in Diglipur. “These are just two of the main attractions. Lakhs of tourists take great pains to reach there from Port Blair every year. With the railway line in place, that part essentially becomes a part of the capital, beneficial to tourists, local residents, and the defense forces,” said Mukhi.

Significance For Defence Forces

The UT administration too pitched for the tourism potential of the rail line claiming it is of “immense strategic value” to the defense forces as Diglipur is only 300 km by sea from the southern coast of Myanmar. The new train line from Port Blair to Diglipur will cover the distance in just three hours.

Andaman__Nicobar_Island_To_Get_Its_First_Railway_Route-image

As per the Railways’ Planning wing, the project can help build the strategic lines for Defence ministry like those in the border regions of the Northeast. In fact, the Finance arm can be taken up as a national project much like the famous Kashmir link.

Cost Of The Project

Boon For Tourism

Suggested Read:

Significance For Defence Forces

Blogs related to "island"

Witness The Pristine Beauty Through The Window - Andaman & Nicobar Island To Get Its First Railway Route