In a major rehabilitation initiative for the Tsunami-hit states, the union cabinet today approved a package of Rs 2,731.04 crore for the fisheries and housing sectors.The package is the first phase of measures taken by the centre, and covers Andhra Predesh, Tamil Nadu, Kerala and Pondicherry, finance minister P Chidambaram said, adding the government was working out a separate package for Andaman and Nicobar, which would be worked out after the visit of agriculture minister Sharad Pawar to the islands tommorow.Briefing reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh, Chidambaram said Rs 861.82 crore would be released for immediate relief measures.Out of the total package, Rs 1,093 crore has been allocated for the fisheries sector.Rehabilitation measures for the sector include loans and grants for fishermen who lost their vessels, besides rehabilitation of fishing harbours, Chidambaram said.For those who lost wooden catamarans, Rs 32,000 would be given as subsidy, and in the case of fishermen who have lost fibreglass boats, whose replacement cost is Rs 1.5 lakh, 35% of the amount would be given as subsidy while 65% would be provided though bank loans at an interest of 7%."In this case, there would also be an interest subsidy of 2% besides a moratorium of one-and-a-half years and a repayment period of seven years," Chidambaram said.Fishermen who have lost wodden catamarans and wish to upgrade their vessels will also be eligible for the second category of assistance.For mechanised boats, which cost up to Rs 20 lakh, a subsidy of 35% would be provided by the government with a ceiling of Rs 5 lakh and the balance as loans.An estimated 1,70,500 houses had been damaged due to the Tsunami and their repair would cost Rs 752.30 crore, Chidambaram said, adding the total expenditure would be treated as central grant.The second phase of the package towards rehabilitation and reconstruction would focus on recovery of agricultural land damaged by floods and reconstruction of infrastructure, he said.
