G/SCM/Q2/IND/30  
 
24 April 2013  
(13-2174)  Page: 1/4  
Committee on Subsidies 
and Countervailing Measures 
 Original: English  
 
 SUBSIDIES 
REPLIES TO QUESTIONS POSED BY THE UNITED STATES1 REGARDING THE 
NEW AND FULL NOTIFICATION OF INDIA2 
The following communication, dated 22 April 2013, is being circulated at the request of the 
Delegation of India. 
 
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General Program Questions  Question 1 
 
For nearly all of the sub-central programs notified, India states that the subsidy is provided to "poor fishermen". How is a "poor fisherman" defined? Do the benefits go to 
individuals?  
 Reply 
 Fishing is a means of livelihood in India as opposed to pre-dominantly commercial nature in developed countries. It is an important source of employment, income, food and livelihood security 
for the large coastal population. More than 14.4 million people are engaged in fishing and fishing 
related activities for their livelihood. Most of them are resource poor and engage mainly in 
subsistence level fishing or sell their catch for consumption in local community. Fishing communities in the coastal area in general have much higher incidence of poverty, lower levels of 
literacy, a lower sex ratio and poor conditions of  housing as compared to national averages.  
 Benefit is extended to fishermen who are having  fishing license, ID cards & boat registration. 
 
Question 2  For numerous programs, India's notification li sts "Financial Assist ance" or "Financial 
Support" as the "Form of Subsidy".  For each of these programs, please clarify the 
nature of the subsidies and how they are provid ed to recipients (i.e., as a grant, loan, or 
other form of subsidy).  
 
Reply 
 
In India’s notification wherever the word, “financial assistance” or “financial support” has been 
shown as the form of subsidy, it is in the nature of “grant”.  
                                               
1 G/SCM/Q2/IND/23.   
2 G/SCM/N/220/IND.   G/SCM/Q2/IND/30 
 
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  Question 3 
 For various programs, India's notification lis ts "Investment" as the "Form of Subsidy". 
For each of these programs, could India please  clarify the nature of the subsidy and how 
it is provided to recipients (i.e., as a gran t, loan, equity purchase or other form of 
subsidy).  
Reply 
 
Investment for infrastructure development is in the form of Grant-in-aid given mainly through State Governments or Union Territories (UTs). 
 
Program-Specific Questions  
Question 4 
 According to India's notification, the Marine Fisheries Infrastructure program is a 
centrally-sponsored scheme to develop marine fisheries infrastructure.   
 
 Please explain if this program is a central government program that is 
administered at the sub-central gove rnment level. Please explain how 
recipients apply for benefits under th is program, including the eligibility 
criteria that must be me t in order to qualify.  
 
 The notification lists the subsidy under this program as an "investment". As 
noted above, please clarify the nature of the subsidy and how it is provided 
(i.e., as a grant, loan, or other form of subsidy). 
 
 Is this program currently ongoing?  
 Reply 
 
 This is a Centrally sponsored Scheme and is implemented in all coastal States and 
Union Territories through State Governments / Union Territories, State Fisheries 
Federations / Corporations, Panchayat Raj Institutions (local self government bodies), 
etc. Beneficiaries are required to submit detailed technical and financial proposals as per laid down criteria of the scheme, th rough proper channel. The procedure is 
intimated through annual administrative approval issued by the Department of Animal 
Husbandry, Dairying and Fisheries.  
 
 Subsidy is provided to the project implementing agencies in the form of grant. 
 
 Yes, the program is currently ongoing. 
 
Question 5 
 
India's notification states that rebates and exemptions on HSD oil are provided by the 
states of Andhra Pradesh, Goa, Karnataka, and Tamil Nadu. For the programs in Goa, 
Karnataka, and Tamil Nadu, please provide th e rates at which the government rebates 
the tax or VAT on HSD oil.    
Reply 
 
Details are indicated below:  
 Goa: - Full refund of VAT.  
 Karnataka: - Exemption of Rs. 5 per litre of diesel. 
 Tamil Nadu: - Rebate of Rs. 3 per litre of HSD, subject to a maximum of 500 litres per month. G/SCM/Q2/IND/30 
 
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  Question 6 
 In addition to subsidies on HSD oil, many sub-central states also provide subsidies for 
fuels, including diesel and kerosene. In lig ht of global concerns about substantial 
overcapacity, overfishing and resource manage ment within the fisheries sector, please 
explain how India's fuel subsidies may impact these concerns, as well as what steps, if 
any, India is taking to mitigate them. 
 
Reply 
 This assistance is to facilitate the poor fishermen to do fishing away from coastal areas and within 
the territorial waters of India, which are underfished. Hence this promotes optimum utilization of 
available fishery resources in a sustainable mann er and prevents over exploitation in coastal 
areas. Moreover, India being a responsible fishing nation, governments at Central and Sub-Central 
levels have undertaken resource management measures including registration of fishing vessels 
and earmarking areas for fishing vessels, observation of closed fishing seasons, proscription of destructive fishing methods, implementation of me sh size regulations, reduction of bycatch and 
discards and establishing an effective monitoring, control and surveillance mechanism, etc. 
 Question 7   
In addition to the centrally sponsored Mari ne Fisheries Infrastructure program, the 
states of Goa, Gujarat, Kerala, Maharashtr a, West Bengal, Daman & Diu, Puducherry, 
and the Marine Products Export Development Authority, appear to provide subsidies to 
support activities such as vessel construction, fish landing facilities, port infrastructure, 
repair, modernization, and fish processing fa cilities. Is there a consideration of India's 
overall fishing capacity when implementing these programs?  
 
Reply 
 Yes, there is a consideration of India’s overall fi shing capacity while implementing these programs. 
 
Question 8  
The State of Goa's Subsidies for Fish Land ing Facilities uses funds allocated by the 
central government to develop marine fisher ies infrastructure. Please explain how this 
program differs from the Marine Fisheries Infrastructure program, as well as the 
eligibility criteria that must be  met in order to qualify.  
 Reply 
 
It is the same programme.  
 Question 9  
 
For the State of Karnataka, please clarify wh at the following programs entail, including 
the criteria for eligibility and whether the "Fin ancial Assistance" is provided in the form 
of a grant, loan, tax exemption, or other type of subsidy: 
 
 Program 3 – Mathsya Mahila Swavalambana 
 Program 7 – Mathsyavahini 
 
Reply 
 
 Under the Mathsya Mahila Swavalambana scheme, group of women and women self help 
groups are provided with revolving fund up to Rs. 20,000 as grant to take up fisheries activities such as fish marketing, post harvest activities, preparation of ready to eat products 
and inland fisheries activities.  
 
 Under the Mathsyavahini scheme, a subsidy of 25%, subject to a maximum of Rs. 30,000 as 
grant, is provided to a group of 3-4 fisherme n for purchase of three wheeler to help in 
transportation and marketing of fish to distant places.  G/SCM/Q2/IND/30 
 
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  Question 10 
 For the State of West Bengal, please explai n what is meant by Program 3 "Any Other 
Subsidies"? 
 
Reply 
 
This includes State contribution as grant to West Bengal Fisheries Corporation Limited (WBFC Ltd.) 
for construction of fisheries science faculty complex at Chalkgaria in West Bengal.  Question 11 
 
For the State of Puducherry, please explai n what is meant by Program 3 "Any Other 
Subsidy"? 
 
Reply 
 
It includes “Subsidy on  Excise Duty on HSD”. 
  
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