KOCHI: The Chinese fishing nets, historic, cantilevered structures that define the coastline of Fort Kochi, are languishing in disrepair, their much-needed restoration stalled for years despite a Rs 2.40-crore grant. The urgency for restoration was underscored when a worn-out platform of one of the nets gave way, with 11 foreign visitors falling into the water last Friday.
While the tourism department had entrusted the Kerala Industrial and Technology Consultancy Organisation (Kitco) with the task of refurbishing 11 nets, the fishermen-owners point towards the insistence of the latter in having a GST (Goods & Services Tax) account for receipt of the grant, and cite it as the reason for not carrying out the repair.
In fact, the mishap involving the foreign tourists happened after a plywood plank, set up temporarily instead of hard wood, gave in, resulting in the collapse of the platform.
Kitco, though, maintains that GST is “mandatory” for benefit of government funds, while promising that it will award a tender for urgent repairs in “four weeks”.
“The delay in the repair of the Chinese nets happened due to bureaucratic requirement for the owners to secure a GST account. Why do the poor fishermen need to take a GST account? They are not doing any large business or export. In fact, the non-repair has been affecting their livelihood for years,” said K J Sohan, former Kochi mayor and a heritage enthusiast. Compounding the loss, the valuable teakwood and ironwood logs sourced years ago have started decaying.
Following the continued insistence, the owners finally formed a collective ‘Fish Net Association’ and secured a GST account. But, the owners lament that they have still not received the funds for repair.
Chinese fishing net owners plead for quick release of fund
In fact, some of the owners, who carried out basic repair work on the assurance of fund extension by Kitco, now finds themselves debt ridden and plead for quick release of the assured sum.
“I took a loan of nearly Rs 5 lakh for the basic restoration work of my Chinese net. It has been three years since I submitted the expense bills. We also secured a GST account and submitted the revised bills. But they have not cleared it yet. Now we are struggling to repay our loans and facing huge debt,” rued Vincent, an owner.
When contacted, a top Kitco official said, “The chief technical examiner of the tourism department has cleared the revised bills. Since they have the GST account, the fund will be issued soon. The tax for the government fund needs to be deducted. In fact, we will start the repair in four weeks.”
“There is a court directive to carry out the repair with the involvement of owners. A five-member high-power committee was formed by the tourism department, with the local MLA as convenor. There was a delay in getting the funds, but now all hurdles have been cleared,” the Kitco official said, while admitting that the administrative sanction for the repair was given as early as 2015.
Meanwhile, Kitco has initiated the process to refurbish the Chinese net platforms using sandalwood. “The tender process for the same will be completed in two weeks and the work in another four weeks,” the official said.
According to GST expert K S Hariharan, as per existing provisions, a GST account is not strictly necessary for the owners to receive the restoration fund or loan, as they are currently not engaged in highly remunerative or export-related work. “KITCO’s insistence on a GST account may stem from foreseeing substantial tourism revenue from the restored nets.
GST registration is only mandatory if a business’ revenue exceeds `20 lakh. Furthermore, once registered, the owners would be liable to pay tax, either 5% or 18%, based on their earnings. The owners, though, can take a GST account and afterwards cancel the same,” he said.