The Indian union government Thursday waived the loans taken by 370 tsunami-hit fishermen of Andaman and Nicobar Islands and the interest accrued on those loans.
It also decided to reimburse the loan and interest amount to the banks that had lent these amounts to those fishermen hit by the December 2004 tsunami.
This decision was taken by the union cabinet at its meeting here, chaired by Prime Minister Manmohan Singh.
“The union cabinet today (Thursday) approved the proposal to waive the loan plus the amount of interest thereon for the 370 tsunami affected fishermen that is outstanding on the date of settlement and to reimburse the same to concerned banks,” a government release said.
As on March 31 this year, tsunami-affected fishermen of Andaman and Nicobar Islands had outstanding loans plus interest thereon amounting to Rs.2.10 crore.
“With the population of the islands being tribals, settlers or migrants from mainland and being economically weak, the Andaman and Nicobar administration had recommended waiver of the entire loan granted to fishermen for repair, replacement and upgrading of boats damaged due to the tsunami, along with accrued interest,” the background note for the cabinet said.
The union territory administration will commence the task of waiving the loans of the beneficiaries immediately.
Following the tsunami in 2004, the union government had approved a package of central assistance of Rs.821.88 crore in respect of the affected areas of Andaman and Nicobar Islands under the ‘Rajiv Gandhi Rehabilitation Package for Tsunami Affected Areas’.