Utilisation of Fisheries of Indian EEZ : Policy Aspects
-Investment Constraints led to Foreign Vessel (LoP) Induction?

It is axiomatic that the fisheries resources of the Indian EEZ, estimated at 3.9 million tonnes, will have to be utilised in a sustainable manner for the benefit of the nation. Out of the aforesaid estimated resource potential, the latest known annual status of its exploitation level is close to 3.20 million t (around 88%). The strength of India’s present fishing fleet owned by Indian enterprises and capable of fishing in deeper waters beyond territorial zone of EEZ to a certain distance offshore is of two categories, those of over 20 m OAL and above, and of 15-16 m OAL. Those of former category consist of around 40 nos. There are 70 vessels of the other category (of 15-16 m OAL). In other words, the total fleet strength of Indian owned vessels as mentioned above can be reckoned as 100 nos, as some of them (around 10 nos) are non-operational. So far as foreign vessels being operated in the Indian EEZ under the Indian LoP (Letter of Permission) system by Indian enterprises concerned, the latest known strength of these vessels is 92 nos, of 35 m OAL and above, each of which can be deemed to be equivalent to the average capacities of about five presently operated Indian owned larger vessels. The present annual output (of around 3.2 million t) is believed to be taken mostly from the terrilorial waters by the mechanised and non-mechanised fishing boats, besides the 100 nos of larger vessels. Here, it has to be mentioned that there can be reservations to concur with this surmise for the reason that there are frequent reports of illegal fishing in the Indian EEZ and the present output of around 3.2 million t mentioned may not include illegal catches. The quantities that are covered by the illegal fishing that may be taking place can be substantial. While the estimate of the fisheries resources of the Indian EEZ (3.9 million t) has a factual basis, many express reservations saying that it is hard to believe that out of 3.9 million t of the estimated resource of Indian EEZ, as much as nearly 3.20 million t are being exploited by the Indian owned fishing fleet, considering that very few of the EEZ’s farther sea fishing vessels of real Indian ownership and also of LoP authorisation are now operating beyond the territorial waters of the Indian EEZ. The share of exploited fishery of Indian EEZ by these vessels, big or small, can be estimated only from their fishery exploitation levels. Information concerning this could not be ascertained.

The general position as can be discerned seems to be that the resources of the EEZ are being almost fully exploited. This is a great supporting point for the present approach of the government of withdrawing investmental support to Indian enterprises for acquiring their own larger vessels. This is highlighted by the winding up of vessel financing facilities (closure of SDFC/SCICI) along with the non-promotion of the needed field set up and the climate in which the enterprises could respond to the personnel of the financing bodies on the job in the field for timely repayments of loans taken by the enterprises concerned. In other words, the set up of the erstwhile financing bodies (SDFC/SCICI) at the catch landing points of the vessels was so weak that it gave opportunities for the loanees to postpone or delay repayments. This weakness helped in proving that repayments of loan instalments were not being made by them regularly.One adverse impact of the withdrawal of the vessel financing system is that the growth of Indian deep sea fishing fleet has been stemmed, paving the way for the ushering in of foreign-owned vessels, with attribution of Indian ownership, under the Letters of Permission (LoP) given by the Indian Government to Indian enterprises, for operating them in Indian EEZ. The vessels would of course continue to be under the possession of foreign owners until such time as the cost of vessels is fully repaid to them and this is not likely to happen (has not happened so far) as long as the vessels continue to be operated by foreign crew and there can be several strategies of the foreign vessel owners for ensuring that the Indian side would not be able to repay the dues fully at any stage. The main aim of the foreign vessel owners, while opting to give their vessels to the Indian LoP holders, can be believed to be one of gaining entry for their vessels into Indian EEZ for fishing. Once this is achieved, their main problem is solved. The foreign vessel owners, particularly Taiwanese, are believed to be familiar with the fishing grounds in the Indian EEZ. In contrast, the Indian enterprises/Indian crew have rarely had an opportunity to gain working knowledge of the grounds beyond territorial waters. Thus, the Indian enterprises have the handicap of not having the needed knowledge of the grounds and operational aspects on one hand, and they seem to have no source of funding for acquiring vessels of their own other than what the foreign vessel owners concede from voyage to voyage, on the other. There is of course the availability of Indian crew trained at CIFNET and also having fishing experience. However, as there is no addition of truly owned Indian vessels to the Indian fishing fleet there is no scope for them to secure jobs on larger vessels to undertake fishing in the farther waters of the Indian EEZ. So much so, several of the trained Indian fishing vessel officers leave the country to take up jobs on fishing vessels of other countries.

The various Indian fisheries associations, particularly the Association of Indian Fisheries Industries, the Federation of Indian Fisheries Industries and the South Indian Federation of Fisheries Societies appealed to the Government to withdraw the policy of allowing the operation of foreign fishing vessels in the Indian EEZ through the device of LoP, but this appeal has not elicited response. In this situation, the Association of Indian Fishery Industries has also filed a writ petition in the High Court of Andhra Pradesh seeking a direction to authorities concerned for the stoppage of the operation of LoP vessels in the Indian EEZ.Acting on this, the High Court of Andhra Pradesh gave a direction to the authorities to consider the related representation of the AIFI dated 1/4/2010 and pass an appropriate order for the stoppage of operation of LoP vessels in accordance with law on or before 20/7/2010 and communicate the same to the petitioners (AIFI).

What is now needed is a dedicated approach on the part of the government/authorities concerned to introduce a well formulated policy to promote fishing in the farther waters of Indian EEZ by truly Indian owned vessels, for the exploitation of the hitherto sparsely (hopefully) utilised resources of the zone, such as squids and cuttle fishes , which have high export value, and with the needed linkages upto their marketing stage. The columnar zone of Indian EEZ is known to be having rich resources of squids and cuttle fishes but India does not have vessels that can exploit these resources and it is not known whether LoP vessels report the catch particulars of these species. The authorities have also to reverse their present perceptions in respect of exploitation of the fisheries resources of the Indian EEZ beyond territorial waters through LoP vessel operation system and in their place entertain progressive ideas’ to promote India’s own larger fishing vessel fleet, keeping in view the vessel building infrastructure that India already has and the opportunities of utilising this for building up the fleet. Once the government demonstrates that it will promote utilisation of the fisheries resources of the farther waters of Indian EEZ also by Indian enterprises for national benefit, there will be the emergence of follow-up activity leading to the dawning of prosperity upon Indian stakeholders dependent on the optinally sustainable utitisation of the nation’s marine fisheries sector beyond territorial zone.