Lakshadweep is one of the world’s most spectacular tropical island systems. Thirty- two sq. km of land spread over 36 islands surrounded by 4200 sq. km of lagoon rich in marine wealth. The dispersed Island situations and small size of Islands put unavoidable constraints to physical development. Islands are forced to support independent infrastructure and amenities and import almost all requirements to develop such facilities besides items of daily need. Lakshadweep, formerly the Laccadives, is a group of islands situated some 400 km off India’s west coast in the Arabian sea. They are India’s only coral atolls and geologically a part of the same chain as the Maldives. Lakshadweep is India’s smallest union territory.