Tuesday, February 1 2005 09:56 Hrs (IST) - World Time -

Sivaganga (TN): Justifying the proposal to route financial assistance to tsunami-hit fishermen through banks, Union Finance Minister P Chidambaram yesterday (Jan 31, 2005) said that implementation of the rehabilitation works was being done as per Union Cabinet's decision and Chief Ministers had been consulted.

Virtually rebutting Tamil Nadu Chief Minister Jayalalithaa's charge that the State had been 'bypassed' by the Centre, he told a Congress workers' meeting in Sivaganga that the loan and grant would be extended only to the fishermen identified by the State Government.

He also said that only the subsidy-linked loan for purchase of mechanised boats and fibre-glass boats would be given through the nationalised banks while the full grant of Rs 32,000 proposed to be given for each country boat would be disbursed through the State Government. The Center was planning to allocate Rs 2,260 crore for Tamil Nadu alone.

His remarks comes a day after Jayalalithaa raised objections to the Center's move to take up rehabilitation measures for fishermen through public sector banks, "setting aside and completely ignoring the State Governments."

Pointing out that loan repayment would begin after 18 months with a repayment period of seven years, Chidambaram said that those making regular payments would get a subsidy of 2 per cent and all this required maintaining accounts.

Earlier, reacting to Jayalalithaa's charge he told reporters at nearby Karaikudi that the Chief Minister had written to the Prime Minister making a complaint. "The Chief Minister has not written to me. She has written to the Prime Minister and I hope he will reply to her letter."