Palghar, Maharashtra: During the discussion on budgetary demands in the Maharashtra Budget Session 2026, Palghar MLA Rajendra Gavit raised the issue of loan waiver for fishermen and urged the state government to provide relief to the coastal fishing community.
Decades-Old NCDC Boat Scheme Haunts Fishing Community
Speaking in the Legislative Assembly, Gavit said that fishermen along the Maharashtra coastline have been engaged in fishing activities for several decades. To promote marine fishing, the government had introduced pilot schemes during the 1970s and 1980s, followed by a boat construction scheme under the National Cooperative Development Corporation (NCDC).
Under the NCDC scheme, financial assistance for boat construction was structured with 55% as loan, 30% as subsidy, 10% as group contribution, and 5% as share capital working fund.
Unpaid Working Capital Component Snowballs into Massive Debt
Gavit pointed out that fishermen’s groups have already repaid the principal amount of the NCDC loans. However, since the 5% working capital component was not repaid, interest has continued to accumulate on it, and compound interest has significantly increased the total outstanding amount. As a result, the debt burden has reportedly increased to nearly five times the original amount.
As of March 31, 2025, the total distributed amount under the scheme was ₹702.20 crore. Out of this, ₹248.82 crore of principal has been recovered, while ₹387.27 crore remains outstanding. The total interest component amounts to ₹531.83 crore, of which ₹96.39 crore has been recovered, leaving ₹435.43 crore pending. Overall, the total pending amount of financial assistance and interest stands at ₹822.70 crore.
Defunct Boats and Climate Change Add to Fishermen's Woes
The MLA said that a majority of the boats constructed under the scheme have now become defunct or damaged, and fishermen have not received any loan waiver so far. He added that changing climate conditions and declining fish catch have also severely affected the income of fishermen.
Considering the financial distress faced by the fishing community, Gavit demanded that the state government waive the loans under the scheme. If a complete waiver is not possible at once, he suggested that the relief be provided in phases.
He also raised the issue of electricity subsidies for fishermen. Gavit pointed out that the Karnataka government provides a subsidy of ₹2.64 per unit on electricity priced at ₹7.64 per unit for fishermen, whereas in Maharashtra the subsidy is only 40 paise per unit on electricity costing ₹1.68 per unit.
He urged the state government to introduce a similar subsidy model in Maharashtra on the lines of Karnataka to support fishermen.
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