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Port Blair (coordinates: ) is the largest town in the Andaman Islands and the capital of the Andaman And Nicobar Islands Union Territory of India . It lies on the east coast of South Andaman Island and is the main entry point to the islands. It is also the headquarters for the Indian District of Andaman , and the local administrative sub-division ('' Tehsil ''), which is also called Port Blair . The town's population as per the latest ( 2001 ) Census Of India figures was 99,984. The town is named for Archibald Blair of the British East India Company , who founded a nearby Penal Colony in 1789 . Port Blair was founded by the British in 1858 , the Cellular Jail surviving from this period. For a time during 1943 and 1944 , Port Blair was the headquarters of the Indian National Army government under Subhash Chandra Bose . The town is a Port , with ferries sailing to mainland India. Vir Savarkar Airport is situated in the city and is serviced by Indian and Jet Airways . It is also home to several museums and a major base for the Indian Coast Guard . Although damaged by the 2004 Indian Ocean Earthquake , Port Blair survived sufficiently to act as a base for relief efforts in the islands. |