TN govt avails Rs 420 cr from FIDF; Experts say its only for big players

The Government of Tamil Nadu has signed a Tripartite MoA for availing Rs 420 crore from Nabard for development of three fishing harbours namely, Tharangampadi in Nagapattinam Ditrict, Thiruvottriyur Kuppam in Tiruvallur District and Mudhunagar in Cuddalore District.

It bears recall that Ministry of Fisheries, Animal Husbandry and Dairying created a dedicated fund (FIDF) of about Rs 7522.48 crore to address the infrastructure requirement for fisheries sector. Nabard, NCDC and all scheduled banks are Nodal Loaning entities to provide concessional finance under this Fund.

FIDF provides concessional finance to the eligible entities, cooperatives, individuals and entrepreneurs for development of identified fisheries infrastructure. But who is eligible is a big question, ask experts.

People connected with fisheries cooperatives are not impressed with this the creation of this much-touted Fund as they feel that it only favours the big players.

Given at a concessional rate of 5 percent, the collateral demand for the same is such that no poor fisherman can afford to have the same, said experts.

“As for example if NCDC gives a loan of Rs 1 crore, it seeks to mortgage Rs 1.25 crore of assets’, said a co-operator wondering who other than big fishermen can afford to buy such loans.

Co-op experts also ask why the Fund created a year ago has failed to take off yet. One of the main reasons is lack of awareness and unless the co-ops are involved in a big way, there would not be many takers of this Fund, they assert.

Govt sources claim that the Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying under the FIDF provides interest subvention up to 3% per annum for providing the concessional finance by the NLEs at the interest rate not lower than 5% per annum. But all these only for the big fisheries companies, state experts.

Govt claims that proposals to the tune of Rs.1715.04 crore were received from various State Governments and other Eligible Entities (EEs) and these have also been recommended by the Central Approval and Monitoring Committee constituted in the Department for consideration under FIDF.

This is true that state govts and big players may avail the Fund but it is beyond the reach of ordinary fishermen. “But ordinary fishermen may benefit from the infrastructural development of harbour and other facilities”, opines a govt official.

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