INDIA: subsidies for fuel and out of board motors

Public authorities in India, (central government and States)  have an history of supporting the fisheries sector (see my post tagged “India”).  India has also been very adamant at the WTO negotiations on fisheries subsidies in defending the possibility by governments to give subsidies to fisheries, especially in developing countries. This is confirmed by the written proposals that India has submitted to the WTO.

Recently the State of Goa has published an order for the implementation/continuation of the of State Sector Scheme “Financial Assistance towards subsidy for purchase of Kerosene for Out Board Motor Operators”.
I copy here a couple of extracts of the order.

For fuel, fishermen eligible for the aid will receive a: 

“lump sum subsidy of Rs. 30,000/- (Rupees Thirty thousand only) per year on a minimum consumption of 2000 litres of Kerosene.” 

For Out Board Motors: 

“The beneficiary will be entitled for financial assistance to the extent of 50% of the cost limited to Rs. 40,000/- (Rupees Forty thousand only) per O.B.M. of 8-10 HP to be shared by the State and the Central Government from the year 2011-12 of which the Central share shall be 50% of the eligible subsidy limited to Rs. 15,000/- (Rupees Fifteen thousand only) and balance of Rs. 25,000/- shall be borne by the State Government. The bank will finance the loan amount to the extent of the cost of the out board motor hypotheticating the canoe of the applicant and considering the cost of the canoe as margin money and also taking into account of Rs. 40,000/- (Rupees Forty thousand only) as a Government subsidy. Motor purchased with self finance are also eligible for subsidy at the above rate.”

Readers will note that the subsidy for the Out board motors receive financing from the Indian Central Government.

Here is a link to an article by the “Times of India” on this subsidy.

And here a link to the order published by the Government of the Indian State of Goa. 

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