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State waiting for the Centre's nod

By V. Jayanth

CHENNAI, FEB.16. The Tamil Nadu Government hopes that the Union Cabinet, meeting tomorrow, will review its decision on linking the subsidy to tsunami-hit fishermen with a bank loan scheme for their livelihood. The State and the affected fishermen have been urging the delink so that they will be free to avail themselves of the subsidy without being compelled to take a loan. The fishermen are also appealing to the Centre to enhance the subsidy component, especially for fibreglass boats.

The State Government expects that it will be in a position to finalise the scheme for the fishermen to resume their livelihood, once a final decision is taken by the Centre. Preliminary estimates show that 8000-odd fibreglass boats and about 2,500 mechanised boats are among the fishing vessels damaged beyond repair.

Following the Union Cabinet's decision to offer a subsidy-linked loan scheme in the name of Rajiv Gandhi, Chief Minister Jayalalithaa wrote to Prime Minister Manmohan Singh, urging provision of an outright grant to the State to enable the fishermen to repair their boats or go in for new ones as soon as possible.

In the absence of funds, the scheme did not take off and the fishermen were in no mood to raise a bank loan with all attendant formalities and procedures. As the entire sum involved was just about Rs. 1,000 crores, the Government expected the Centre to release it as a grant and route it through the State. The Chief Secretary and a team of top officials handling relief and rehabilitation personally explained to the Cabinet Secretary in New Delhi the need for and urgency of releasing the grant.

Major challenge

Simultaneously, the State administration is going ahead with the permanent housing scheme in the coastal districts. "It is proving a major challenge and a very sensitive issue. Relocation will be a huge problem and finding land acceptable to the fisherfolk may be equally challenging," said a senior official involved in rehabilitation.

Steps were being taken to identify land in all tsunami-hit districts and the Collectors were empowered to acquire it. While a survey of those who lost their homes was completed in all districts, it was not done in Chennai owing to "reluctance on the part of the fisherfolk to cooperate with the exercise."

The Centre, which earmarked about Rs. 650 crores for a permanent housing scheme for the fishermen, was expected to take some more time to finalise the project.

The World Bank and the Asian Development Bank showed interest in offering a soft-window, low interest loan for special tsunami relief and rehabilitation projects. Two teams visited the affected States, including Tamil Nadu, and made their own assessment of the damage. "It is possible that the Centre will firm up one or more projects for their funding. We are interested in seeking assistance for the reconstruction of infrastructure in the tsunami-hit districts," the official said.

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