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The volcano, known as Barren 1, is located 135km north-east of the capital Port Blair and last erupted in 1996.
It runs about 150 fathoms under the sea and usually gives off smoke.
M M Mukherjee of the Geological Survey of India said the volcano presented little real danger.
"The risk is minimised because it is surrounded by the sea so if at all there is a lava flow it will roll off into the sea," he said.
The Andamans has reported a series of major aftershocks daily since the massive undersea earthquake off Sumatra.
The Andaman and Nicobar Islands are located near a zone of intense tectonic activity.
A second volcano, called Narcondam and considered dormant, lies close to Barren Island, which also erupted in 1991 after more than a century of inactivity.
The alert was issued by officials in Tamil Nadu state, which was particularly hard hit by Sunday's Indian Ocean sea surges.
They said aftershocks near the Andaman and Nicobar islands were likely to cause high waves threatening the coast.
The alert was issued following information that several aftershocks in the region had pushed up the water level, said an official at the emergency control room set up by India's Home Ministry in New Delhi.
But an earthquake expert said the aftershocks were probably not strong enough to produce tsunamis.
An estimated 5.7 magnitude underwater earthquake was recorded by the Hong Kong observatory, north-west of Sumatra, Indonesia, close to the epicentre of last Sunday's temblor. Other quakes were felt in Thailand and Burma.
"We have issued an alert. There could be a wave attack in the next one hour," said Veera Shanmuga Mani, the top administrator in Nagappattinam, a coastal town in southern Tamil Nadu state where most of the deaths from the weekend tsunamis occurred.
Originally posted by TrueAmerican
Here's another interesting look at the Barren Volcano, from a scientific expedition in 2003:
www.geos.iitb.ac.in...
Originally posted by sanctum
Map of the Andaman and Nicobar islands. The volcano Barren 1 is located on Barren Island...