The Hindu : Tamil Nadu News : Fishermen yet to net funds

Online edition of India's National Newspaper
Friday, Apr 08, 2005

Tamil Nadu

Tamil Nadu

Fishermen yet to net funds

By A.V. Ragunathan

CUDDALORE, APRIL 7. Funding repairs to and replacement of tsunami-damaged boats of fishermen is still hazy.

They are yet to come to grips with the subsidy-cum-loan package offered by the State Government; all they want is immediate cash to set things right, without getting bogged down in procedural wrangles.

Even after the Government substantially enhanced the subsidy, they are not comfortable with raising bank loans. In Cuddalore district, there are no takers for loans.

Subsequently, the Government modified the package: subsidy for fibre-reinforced boat has been raised from Rs. 52,500 to Rs. 75,000 (the original cost Rs 1.50 lakhs); for partly mechanised boats 60 per cent or a maximum of Rs. 3 lakhs; and for the fully damaged boats 35 per cent or a maximum of Rs. 5 lakhs (the original cost ranges from Rs. 15 to Rs. 18 lakhs).

Earlier, it was said that only those who opted for loan would be eligible to get subsidy. But this was modified under public pressure and fishermen were given the option of availing themselves of the subsidy and raising the remaining amount on their own sources.

However, bankers insist that "asset creation" is a must. In other words, the fishermen must produce new catamarans or vouchers for spares.

P. Shanmugham, a spokesman for the community, said that for those who lost every thing it would be difficult to raise funds. There was no corpus with the panchayatdars. Hence, the question of tapping common resources for procuring spares did not arise. The only alternative was to further increase the subsidy or to make cent per cent grant, he said.

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