Use rural banks, post offices for cooking gas subsidy, Modi urged

Tamil Nadu Chief Minister O. Panneerselvam Friday urged Prime Minister Narendra Modi to involve primary agricultural cooperative societies, post offices and urban cooperative banks in the direct delivery of subsidy on cooking gas cylinders.

In a letter to Modi, text of which was released to the media here, the chief minister said: "In remote and rural areas, people may find it difficult to access nationalised bank branches."

In order to deepen penetration in the villages, the primary agricultural cooperative societies and post offices can also be involved in delivering the subsidy which would reduce the inconvenience, said Panneerselvam.

"In urban areas, urban co-operative banks can also be involved in the delivery of subsidy."

"In fact, we already face this problem in rolling out transfer of old age pensions through bank accounts, as banks are not in a position to make available a robust mechanism for door to door disbursal of pensions, which has been the delivery mechanism so far through postal money orders," he wrote.

According to the chief minister, the consumer should be protected from fluctuations in the market price of cooking gas which is linked to international prices.

"Hence, the total amount of subsidy should not be fixed and should be increased as and when the market price of LPG (liquefied petroleum gas) increases and such increased amounts credited to the bank accounts to ensure that the consumers are not put to hardship," he said.

"Lack of clarity on this aspect would lead to considerable dissatisfaction amongst consumers, especially those of the lower and middle classes," he added.