Tamil Nadu asks Centre to create adequate banking infrastructure

Also asks govt to implement other suggestions before implementing the Modified Direct Benefit Transfer

The Tamil Nadu government today has asked the Centre to put in place an adequate banking medium and other necessary suggestions before delivering the modified-direct benefit transfer to the LPG consumers in the state.

The modified-direct benefit transfer to LPG consumers (MDBTL) scheme was  launched in 54 districts across the country on November 15, 2014. In Tamil Nadu, MDBTL is proposed to be launched on January 1, 2015.

In a letter to the Prime Minister today, Tamil Nadu chief minister O Panneerselvam recalled the AIADMK  chief and former chief minister J Jayalalithaa had written to the previous PM, in which, she  indicated the state had already been adopting a mechanism of direct cash transfer through bank accounts of the beneficiaries for schemes  involving conditional cash transfers like scholarships, maternity benefits, social security pensions.

The chief minister also said Tamil Nadu was strongly opposed to any move to adopt cash transfers for subsidy element under the public distribution system (PDS), including kerosene and fertilisers, where the issue is not just the quantum of subsidy, but the critical concern is access and the timely availability.

“On grounds of sound administrative practice and to ensure states become true partners in development, the direct transfer of cash to the bank accounts of beneficiaries should be affected by the states with the Centre releasing its share,” said the chief minister.