The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has given its approval for creation of special Fisheries and Aquaculture Infrastructure Development Fund (FIDF).
What is FIDF?
It is an estimated fund size of Rs.7,522 crore, comprising Rs.5,266.40 crore to be raised by the Nodal Loaning Entities (NLEs), Rs. 1,316.6 crore beneficiaries contribution and Rs.939.48 crore budgetary support from the Government of India.
What is the aim of FIDF?
The fund will ensure that entrepreneurs, fishermen, cooperatives will get loans at subsidized interest rate and two years moratorium on repayment of principal amount. The credit facilities will help attract investment in fisheries development, boost fish production by 67% in next four years.
The aim is to raise India’s, the world’s second largest producer, fish production to 20 million tons per year by 2022-23 from current level of about 12 million tons. There was an urgent need to create the necessary infrastructure in fisheries sector to achieve the target.
Which entities can disburse the loan from this fund?
The National Bank for Agriculture and Rural Development (NABARD), National Cooperative Development Corporation (NCDC) and all scheduled Banks (hereinafter referred as Banks) shall be the nodal Loaning Entities.
What are the benefits of the Fund?
-The credit from the fund will help generate over 9.40 lakh direct and indirect employment of fishermen and others in fishing and allied activities, he said. There are about 1.5 crore people engaged in the fisheries sector.
-Creation of fisheries infrastructure facilities both in marine and Inland fisheries sectors.
-To augment fish production to achieve its target of 15 million tonne by 2020 set under the Blue Revolution; and to achieve a sustainable growth of 8% -9% thereafter to reach the fish production to the level of about 20 MMT by 2022-23.
-To attract private investment in creation and management of fisheries infrastructure facilities.
-Adoption of new technologies.
Who all the avail the loan?
FIDF would provide concessional finance to State Governments / UTs and State entities, cooperatives, individuals and entrepreneurs etc. for taking up of the identified investment activities of fisheries development.
What is loan disbursement and repayment period?
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.