The Union Cabinet, at a meeting chaired by Prime Minister Manmohan Singh, approved the proposal for the loan plus interest waiver and reimburse them to the banks concerned.
"As on 31-03-2012, tsunami-affected fishermen of Andaman & Nicobar Islands had outstanding loans plus interest thereon amounting to Rs 2.10 crore and the amount outstanding at the time of settlement will be reimbursed to the concerned banks," an official release said.
About 370 tsunami-affected fishermen of Andaman & Nicobar Islands will be benefited by the Cabinet decision, it said.
The Andaman & Nicobar administration had recommended waiver of the entire loan granted to fishermen for repair, replacement and upgrading of boats damaged due to the December 2004 tsunami, along with accrued interest.
"The administration will commence the task of waiving the loans of the beneficiaries immediately. This will benefit all such beneficiaries who are tribals, settlers or migrants from mainland and are economically weak," the release said.
After the 2004 tsunami, the Centre had approved a package of Central Assistance of Rs 821.88 crore to the tsunami affected areas of Andaman & Nicobar Islands under the "Rajiv Gandhi Rehabilitation Package for Tsunami affected areas".
As per the package, an amount of Rs 15.01 crore had been approved for Fisheries Sector which included Rs 2.53 crore for construction of cold storage.
The Package for Fisheries Sector included 50 per cent subsidy and balance as loan for replacement/upgrading of boats plus motor up to unit cost of Rs two lakh and boat transportation cost of Rs 35,000.
It also included upgrading/replacement of local made donghies to opt engine fitted donghies, subject to a maximum subsidy of Rs one lakh each per unit and transportation cost Rs 35,000.
The package also comprised 60 per cent subsidy with a ceiling of Rs 65,000 and balance as loan for repair of boats with motors.
