This chapter examines the social and environmental impacts of a large-scale government development project in the Andaman and Nicobar Islands, India. Despite its far-reaching implications, the project has received little scholarly attention. This study seeks to fill that gap by offering fresh perspectives on how such mega-projects affect fragile ecosystems and marginalized communities. The research draws on both primary and secondary data, including fieldwork conducted by the authors during a visit to the islands two years ago. Through in-depth interviews with local residents, journalists, activists, and academics, the study captures the experiences of indigenous communities and their interactions with government policies. These insights are supported by a review of relevant literature and media sources. The findings reveal that the project poses a serious threat to the islands’ rich biodiversity—particularly within the Andaman and Great Nicobar biosphere reserves—and could lead to the displacement of indigenous populations and the destruction of critical habitats, including nesting grounds for endangered leatherback turtles and saltwater crocodiles. The authors argue that, unless halted, the project risks becoming a “development disaster” with lasting ecological and social consequences.