Reimbursement/Spot Exemption of Sales Tax on High Speed Diesel Oil to Marine Fishermen
Sales tax on the diesel a registered mechanised boat burns is reimbursed or spot-exempted — up to ₹12 per litre in recent sanction orders — capped at 15,000 litres per boat each year.
Run by: Department of Fisheries and Fishermen Welfare, Government of Puducherry
- Reimbursement rate
- Up to ₹12/litre*
- Annual cap
- 15,000 litres/boat
- Since
- Gazette 2009, revised since
- Covers
- Registered mechanised boats
Overview
Diesel is the single biggest running cost for a mechanised fishing boat, and Puducherry has reimbursed the sales tax on it since a 2009 gazette notification (G.O. Ms. No. 10/FY) — one component within the department's wider "Financial Assistance for Availing Subsidy Components for the Development of Marine Fisheries" rules. The core rule has not changed since: the prevailing sales tax on HSD oil consumed by a registered boat is reimbursed, or spot-exempted at the pump, subject to a ceiling of 15,000 litres per boat per year.
The rupee value of that reimbursement is revised periodically by government order — the department's own expenditure sanction orders for 2023-24 and 2024-25 quarters, across the Puducherry, Karaikal, Mahe and Yanam regions, describe it as "spot exemption of sales tax on HSD and reimbursement of diesel subsidy maximum of Rs.12/- per litre". Because this rate is explicitly subject to revision, always confirm the current figure with your regional Fisheries office before budgeting a season around it.
This is a use-it-as-you-fish benefit, not a lump sum: a diesel pass book has to be renewed every month and diesel bought only from an authorised bunk, with bills kept as proof. The department also disqualifies a boat that fished during a notified fishing-ban period from claiming the subsidy for that stretch — the rule exists to support fishing, not to work around the ban.
What you get
The benefit as the state notifies it — nothing here is an estimate.
- Reimbursement or spot exemption of the sales tax on HSD oil consumed by your registered mechanised boat — recent sanction orders put this at up to ₹12 per litre, though the rate is revised by government from time to time.
- Annual ceiling of 15,000 litres per boat, which covers a meaningful share of a working season's fuel bill for most Puducherry-registered craft.
- Runs alongside the department's other marine-fisheries components — boat/craft purchase subsidy, financial grant for reactivating a boat, and subsidy on annual insurance premium — under the same umbrella rules.
- Applies uniformly across Puducherry, Karaikal, Mahe and Yanam regions, each processed through its own regional Fisheries office.
Who is eligible
State schemes usually state their criteria as prose rather than a checklist. This is that prose, unpacked — the department’s verification is what decides.
You qualify if
- Own a registered mechanised boat or motorised fishing craft, renewed on an annual basis
- Member of a Fishermen Co-operative Society, aged above 23 and below 60
- Ordinarily resident in Puducherry for a continuous period of at least 5 years
- Diesel pass book renewed monthly and diesel drawn only from an authorised diesel bunk
- No dues pending to the Department or the Fishermen Co-operative Society at the time of claim
Not covered
- Boats that ventured for fishing during a notified fishing-ban period, for that period's claim
- Diesel purchased from unauthorised outlets, without bills as proof
- Applicants employed in Government, a Government undertaking, or the Fishermen Co-operative Society itself
- Consumption beyond the 15,000-litre annual ceiling per boat
Documents you need
Have these ready before you start — most rejections are a missing paper, not a missing right.
- Boat registration certificate (renewed for the year)
- Fishermen Co-operative Society membership certificate
- Diesel pass book, renewed monthly
- Diesel purchase bills from an authorised bunk
- Bank account details for reimbursement
How to apply
Fewer steps than a central scheme, and usually one office rather than a portal.
- 1
Renew your boat registration and diesel pass book
Keep your mechanised boat's annual registration current, and get your diesel pass book renewed every month at your regional Fisheries office.
- 2
Draw diesel only from an authorised bunk and keep bills
Purchase HSD oil from a bunk/outlet authorised by the Department, and retain the bills — these are your proof of consumption for the claim.
- 3
Claim is verified and settled through the regional office
The Sub-Inspector of Fisheries verifies the claim on the field; it is recommended by the Assistant/Deputy Director and settled — as spot exemption at the bunk or reimbursement — subject to the annual 15,000-litre cap.
If something goes wrong
Missing from the list, or payment stuck — here is the channel the department itself publishes for it.
- For a claim held up, a pass-book renewal refused, or an amount short of what your bills support, take it up with the Sub-Inspector of Fisheries and then the Assistant / Deputy Director at your regional Fisheries office (Puducherry, Karaikal, Mahe or Yanam), and the Director of Fisheries and Fishermen Welfare.
- If it stays unresolved, it can be raised at the District Collector's grievance cell or on CPGRAMS (pgportal.gov.in), the central grievance portal the UT routes grievances through.
Frequently asked questions
Is the rate really ₹12 per litre?
That is the figure used in the department's recent (2023-24, 2024-25) expenditure sanction orders, but the gazette rules describe it as reimbursement/exemption of "the prevailing sales tax", which the government revises from time to time. Confirm the current rate with your regional Fisheries office.
What happens if I fish during a notified ban period?
You cannot claim the diesel subsidy for that period — the rules specifically exclude a boat that ventured for fishing during a notified fishing-ban period.
I bought diesel from a regular pump, not an authorised bunk. Can I still claim?
No. The subsidy requires diesel to be drawn from an authorised diesel bunk/outlet, with bills as proof — purchases from other outlets are not eligible.
Is there an age limit?
Yes. The applicant must be a Fishermen Co-operative Society member aged over 23 and under 60, and ordinarily resident in Puducherry for at least five continuous years.
Does the 15,000-litre cap reset every year?
Yes. The ceiling is 15,000 litres per boat per fishing year. Consumption beyond that in a year is not reimbursed, and the count starts fresh the next year.
Is this the only subsidy for a boat owner?
No. It sits under the same umbrella rules as the department's boat/craft purchase subsidy, the grant to reactivate a boat, and the subsidy on the annual insurance premium — a boat owner can use these alongside the diesel reimbursement.
Facts checked against fisheries.py.gov.in on 8 September 2026. editorial policy.