Chennai, Aug 15 (IANS): Tamil Nadu Chief Minister J. Jayalalithaa Thursday hoped that India will soon regain its rights over the Katchatheevu island that was ceded to Sri Lanka in 1974.

In her Independence Day speech here, Jayalalithaa also said that her government was taking steps to protect people from inflation due to the central government's wrong economic policies.

"I have faith in re-establishing our rights in Katchatheevu," she said after unfurling the national flag at the state secretariat Fort St. George.

Katchatheevu is located in the narrow sea dividing India and Sri Lanka. The sea near it is said to be rich in marine life, leading to frequent clashes between Indian and Sri Lankan fishermen.

This year, the Tamil Nadu assembly passed a resolution urging the central government to revoke the Katchatheevu transfer agreement.

The chief minister declared that Tamil Nadu will keep the public distribution system (PDS) going in order to address issues related to the poor.

She increased the freedom fighter's pension by Rs.2,000 to Rs.9,000 and the freedom fighter's family pension to Rs.4,500 from Rs.3,500.

Coming down heavily on the central government and its economic policies, Jayalalithaa said these had affected people from all walks of life.

She said the rupee devaluation and higher oil prices had impacted the people.

Her government, she said, was taking steps like free rice to poor, selling rice and vegetables through cooperative stores, setting up "Amma Canteen" that sell subsidised food and others.

Jayalalithaa said several steps were being taken to usher in a second green revolution in the state.

Independence Day was celebrated across the state as district collectors unfurled the tricolour. In many schools, students turned out early in the morning with mini national flags pinned on their uniforms.