New Delhi, July 28: The government on Thursday decided to reduce the term of fixed deposit from 10 years to 3 years for beneficiaries of Tsunami affected areas of Andaman & Nicobar Island whose amount of compensation is equal to or less than Rs 10,000.
The decision, which was taken at a Cabinet meeting, is aimed at helping the beneficiaries to withdraw the funds earlier for their requirement.
The relaxation today came through modification of the Revised Relief Package of Assistance for the Animal Husbandry sector for Tsunami affected areas which had been cleared by the Cabinet in February 2009.
The decision will benefit those whose compensation amount is very meager and those who are quite old and reluctant to open fixed deposit account for a term of 10 years.
Tsunami had hit Andaman & Nicobar island in 2004.
Under the “Rajiv Gandhi Rehabilitation Package for Tsunami affected areas” of Andamand & Nicobar islands, an amount of Rs 11.81 crore was earmarked for the Animal Husbandry sector which consisted of Rs 10.14 crore for replacement of livestock lost.
However, the same was revised to Rs 25.70 crore by the Cabinet in August 2006.
Subsequently, in view of shortage of livestock in the UT, it was decided to compensate the beneficiaries by placing the amount in fixed deposit for a period of 10 years during which the beneficiaries were to be allowed only to draw the interest accrued thereon.
It was decided that principal amount will be paid at the end of 10 years.
—PTI