Context: Recently, Union Government is considering increasing the unit cost of deep-sea fishing vessels under the Palk Bay scheme to make it more attractive to fisherfolk.
About the Palk Bay scheme

• Launched in July 2017 under the Blue Revolution programme.
• The scheme is financed by the Union and the State Governments with beneficiary participation.
• It had envisaged the provision of 2,000 vessels in three years to the fishermen of the State and motivate them to abandon bottom trawling.

Significance of the scheme

• The scheme was envisioned as the remedy to the Palk Bay fishing conflict.
• The Centre feels that deep sea fishing is the “only solution” to promote ecologically sustainable fishing and reduce “fishing pressure” around the close proximity of the the International Maritime Boundary Line (IMBL) and the incidents of cross-border fishing.

Implementation of the scheme

• It was planned to have 500 boats built in the first year (2017-18). Of the unit cost of each vessel (Rs 80 lakh), 50% would be borne by the Centre, 20% by the State government and 10% by the beneficiary, and the remaining 20% would be met through institutional financing.

Note: The Scheme is limited to vessels costing upto Rs. 80 Lakh and the scheme is not part of Pradhan Mantri Matsya Sampada Yojana.

Obligations to beneficiaries under the Deep Sea fishing plan

• The Deep Sea fishing plan is to remove as many trawl vessels from the Palk Bay as possible.
• Potential beneficiaries of the deep see fishing project should possess a registered, seaworthy trawl vessel of over 12m in length that must be scrapped or disposed of outside the Palk Bay.
• The disposed vessel should also have been physically verified.
• Equally important, new replacement tuna long liner boats cannot trawl or operate in the Palk Bay.
• Beneficiaries are not allowed to sell their boats within five years of obtaining them.

Marine Fisheries Bill

• The Bill proposes to only grant licenses to vessels registered under the Merchant Shipping Act, 1958, to fish in the Exclusive Economic Zone (EEZ).
• It also proposes punishments for fishermen breaching the EEZ without a licence, not complying with Indian Coast Guard (ICG) orders, and obstructing ICG officials.
• The Bill prohibits fishing by foreign fishing vessels, thus nationalising our EEZ.
• It proposes social security for fish workers and calls for protection of life at sea during severe weather events.
• As for the proposed Marine Fisheries Bill, it would not “in any way affect our fishermen in any place”. 
• It had been mooted in the absence of any law to regulate fishing activity taking place beyond 12 nautical miles from the shore. Up to 12 nm, the State laws were in place.

Percentage of Fishing craft in India

• Traditional craft (24.2 %)
• Motorised craft (51.6 %)
• Mechanised craft (24.0 %)
• Deep sea fishing vessels(< 0.2%)

Additional Information
Pradhan Mantri Matsya Sampada Yojana (PMMSY)

• It is a flagship scheme for focused and sustainable development of fisheries sector in the country.

Aim

• Enhancing fish production by an additional 70 lakh tonnes by 2024-25.
• Increasing fisheries export earnings to Rs.1,00,000 crores by 2024-25D
• Doubling of incomes of fishers and fish farmers.
• Reducing post-harvest losses from 20-25% to about 10%.
• Generation of additional 55 lakhs direct and indirect gainful employment opportunities in fisheries sector and allied activities.

Funding Pattern
1. Central Sector Scheme (CS)

• 100% Central funding for non-beneficiary orientated activities.

Central assistance for

• General category: up to 40% of project cost
• SC/ST/Women category: up to 60% of project cost Beneficiary orientated activities

2. Centrally Sponsored Scheme

• North Eastern & Himalayan States: 90 (center):10 (State)
• Other States: 60:40
• UT: 100% Central Share

Centre + State assistance same as above.

• This assistance will be shared in same manner as for sharing of non-beneficiary orientated activities under Centrally Sponsored Scheme.

Key Facts

• Bottom trawling is a fishing practice that herds and captures the target species by towing a net along the ocean floor.
• Bottom trawling, an ecologically destructive practice, involves trawlers dragging weighted nets along the sea-floor, causing great depletion of aquatic resources.