Published: 29th Oct, 2018
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister has given its approval for creation of special Fisheries and Aquaculture Infrastructure Development Fund (FIDF).
Context
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister has given its approval for creation of special Fisheries and Aquaculture Infrastructure Development Fund (FIDF).
About
- The fund aims to provide loans at subsidized interest rate to State Governments / UTs and State entities, cooperatives, individuals and entrepreneurs etc., for taking up of the identified investment activities of fisheries development.
- Through this, aim is to raise India’s fish production to 20 million tonne per year by 2022-23 from current level of about 12 million tonne.
Mechanism
- The approval of FIDF is expected to raise an estimated fund size of Rs. 7,522 crore out of which Rs. 5266.40 is to be raised by the Nodal Loaning Entities (NLEs).
- Nodal loaning Entities will include National Bank for Agriculture and Rural Development (NABARD), National Cooperatives Development Corporation (NCDC) and all scheduled Banks.
- Government of India will inject Rs. 939.48 crore directly from the budgetary support and the rest of the amount would be induced through beneficiary contribution.
- Under FIDF, loan lending will be over a period of five years from 2018-19 to 2022-23 and maximum repayment will be over a period of 12 years inclusive of moratorium of two years on repayment of principal.
- Department of Animal Husbandry will frame the guidelines for the disbursement of the credits as well as the interest rates these loans will attract.
Significance
- The fund will help in creation of fisheries infrastructure facilities both in marine and inland fisheries sectors.
- It will help in achieving targets set under Blue Revolution such as fish production of 15 million tonne by 2020.
- It will help in generating employment opportunities to over 9.40 lakh fishers/fishermen/fisher folk and other entrepreneurs in fishing and allied activities.
- It will help by attracting private investment in creation and management of fisheries infrastructure facilities.
- The fund will provide capital and avenues for adoption of new technologies.
India- the second largest producer of fish
- Notably, aquaculture in India was established in the 19th century.
- Since 2017, India is the 2nd largest producer of fish in the world and exports a large quantity of fish products to various parts of the world.
- The country produces around10 lakhs metric tons of fish annually.
- Indian fish industry accounts for the 6% of total fish produced in the world.
- Some of the recent studies show that India is a country with huge potential to increase the fish production if the government supported the industry.
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