The Hindu Business Line : Revised package for TN fishermen announced

THE Tamil Nadu Government has announced a revised package to support fishermen who have lost their fishing crafts in the tsunami that struck the coast on December 26.

In a statement, the Chief Minister, Ms J. Jayalalithaa, said that that the Government has decided to go ahead with the permanent rehabilitation scheme following the procedural delay in the scheme announced by the Centre.

The State Government hopes that the Centre will reimburse the expenditure. With this package, the total assistance sanctioned to fishermen will be Rs 550.27 crore, according to the statement.

Under the scheme, fibre reinforced plastic catamarans and `vallams' are eligible for 50 per cent subsidy, up to a maximum of Rs 75,000, for boats with a unit cost of Rs 1.5 lakh.

Replacement of fully damaged or lost mechanised boats will receive 35 per cent of total cost as subsidy up to a maximum subsidy of Rs 5 lakh.

For repairs, 60 per cent subsidy is available up to a maximum of Rs 3 lakh a boat.

The subsidy will be released to individual fishermen to procure the assets.

Arrangements will also be made to send the applications to public sector banks for sanctioning the rest as loan so that the subsidy is connected to the loan.

The statement added that procedural changes announced by the Centre in sanctioning the assistance have led to a delay.

The Union Home Ministry had sanctioned Rs 356.54 crore on January 31 for the permanent rehabilitation of fishermen, providing for subsidy for renewal and restoration of mechanised boats and small fishing craft with a unit cost of up to Rs 1.5 lakh.

But the Union Finance Minister had said that the funds would be released to public sector Banks.

The State Government, on February 4, had sought 100 per cent assistance and urged that the subsidy be routed through the State Government.

The Centre had then hiked the subsidy for small craft to 50 per cent to be routed through the State Government while retaining 35 per cent subsidy for mechanised boats, which would be routed through banks.

The State Government had again written to the Centre on February 17 requesting that the subsidy be routed through the State Government for small crafts and mechanised boats. But the Centre is yet to make known its final view on the issue.

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