A harbour of hope that sank a Nagapattinam village into debt

For nearly six years, debt has been the one constant in Nambiyar Nagar, a traditional fishing settlement on the outskirts of Nagapattinam town.

Every household here owes money — not for a private venture or personal extravagance, but for a government-promoted fishing harbour that residents say never worked for them. What was presented as a model of community participation has left an entire village trapped in a cycle of loans it cannot escape.

In 2019, families in Nambiyar Nagar borrowed ₹5 lakh-₹8 lakh each, under a self-sufficiency scheme to build a fishing harbour. Today, those individual loans have swollen into a collective liability of over ₹20 crore, rendering almost every adult in the village ineligible for fresh institutional credit.

Under the Namakku Naame Thittam, a fishing harbour was proposed for Nambiyar Nagar, long regarded as the head village for 64 fishing hamlets spread across Nagapattinam, Mayiladuthurai, and Karaikal districts. The total project cost was ₹34 crore, of which the community’s contribution was pegged at ₹11.43 crore, with the remaining amount to be borne by the government.

To mobilise the people’s share, loans were sanctioned through Tamil Nadu Grama Bank under the Mudra Scheme. Construction began in 2021 and was completed in two years. But the harbour, residents say, never worked for them.

“There is no ice plant, petrol bunk, or fish processing centre. Even approach roads are inadequate, and the harbour is not deep enough for our boats,” said M. Velayutham, an elder of the fishing community. “We are still forced to use the Akkaraipettai harbour. All our toil has come to nothing.”

Several residents allege that in other villages, fishing harbours were built entirely at government expense. “Here, officials pushed us into this scheme,” said K. Vennila, a fisherwoman.

The debt has since gone up. Though villagers initially tried to repay, the interest has grown faster than the principal. The consequences go far beyond fishing. “When I applied for an education loan, they said it cannot be given,” said D. Selvarani, a fisherwoman. In her extended family, 10 members are borrowers, each representing five others in joint liability groups. “No one in my family can take a loan — for education, health or even to buy a two-wheeler on EMI.”

P. Thamizharasi, and K. Veena — also fisherwomen — echoed the fear: that the debt has sealed their children’s futures. Every group leader, who signed on behalf of five members, now shows more than ₹5 lakh as pending liability on their credit record, rendering them ineligible for any institutional credit.

The COVID-19 pandemic delivered a crushing blow. “Many prominent fishermen could not rise again after the pandemic,” T. Vel, fisher leader for the village, said. “Fish catch has reduced, weather has become unpredictable, and daily needs keep mounting. Repayment is simply impossible.”

Speaking to The Hindu, P. Chandrasekar, the Lead Bank Manager of Nagapattinam district, said there was little flexibility. “If 75% of the loan amount is repaid, the remaining can be written off. But even then, borrowers will not be eligible for fresh loans for the next five years as it will reflect in their CIBIL score,” he said. “Only if the entire amount is repaid within two weeks will the score normalise. These are Reserve Bank of India guidelines.”

Thanga Kathiravan, AIADMK town secretary, said the harbour area had not been desilted, key works remained incomplete, and the government had opened the facility without completing it properly. “Without basic infrastructure, fishermen cannot earn a livelihood. The people here are economically vulnerable and have no means to settle mounting debts. The government must step in urgently to avert a crisis,” he said.

Over the years, the residents have staged multiple protests, submitted petitions, and approached both the State and Union governments seeking financial relief. Delegations from the village have met Ministers, district officials and elected representatives, and have knocked on the doors of political parties across the spectrum, hoping someone would take up their case. “Every time, we are told the matter will be looked into. Nothing has changed,” Ms. Selvarani said.

Published – January 12, 2026 12:50 am IST