Friday, February 18 2005 15:03 Hrs (IST) - World Time -

Chennai: Welcoming centre's move to enhance subsidy for buying smaller fishing crafts costing Rs 1.5 lakh under the rehabilitation package for the tsunami affected fishermen, Tamil Nadu Chief Minister Jayalalithaa today (Feb 18, 2005) wanted the same to be extended for the purchase of mechanised boats.

In a letter to the Prime Minister Dr Manmohan Singh, she said the Cabinet secretary had indicated to the Tamil Nadu Chief Secretary yesterday (Feb 17, 2005) that subsidy for the smaller fishing crafts would be enhanced from 35 per cent to 50 per cent and the subsidy amount would be routed through the State Government.

Jayalalithaa said that she also understood that it would be left to the option of the beneficiary to go for a bank loan or mobilise funds on his own for the remaining amount.

In view of Tamil Nadu Government's demand that fishermen should be fully subsidised for purchase of fishing crafts and fishing nets, Jayalalithaa said she welcomed the modification as it met most of the suggestions made by her in her earlier letter to him.

But the Cabinet Secretary had informed the Chief Secretary that a different procedure was visualised for mechanised boats under which the centre would disburse the subsidy through public sector banks with no change in the pattern of subsidy already announced, she said.

She said practical problems encountered in the field should be recognised as most mechanised boat owners wanted to get their boats repaired or procure new boats with subsidy amount to be sanctioned, leaving them the option of going for a bank loan or other funds for the balance, she said.