The body of Karthikeyan (32) was received by Fisheries Minister K A Jayapal and Tiruchirapalli District Collector Jeyashree Muralidharan in that city and later cremated in his native village at Tirupalaikudi, police said.
The minister also handed over a cheque of Rs 5 lakh to Karthikeyan's wife.
Karthikeyan was working on contract in Bahrain for the last four months. He along with three fishermen reportedly entered Qatari waters on September 21 when the naval personnel of that nation shot him dead and took the others prisoner.