CHENNAI: Chief minister O Panneerselvam on Friday urged Prime Minister Narendra Modi to provide adequate banking infrastructure across the Tamil Nadu when it launches the direct benefit transfer scheme for LPG consumers in the state on January 1.

The Union government has already launched the modified direct benefit transfer to LPG consumers in 54 districts in the country.

In a letter to Modi, the chief minister said in remote and rural areas, people would find it difficult to access nationalized bank branches. Primary agricultural cooperative societies and post offices could be involved in delivering the subsidy to reduce the inconvenience.

“In urban areas, urban cooperative banks can also be involved in the delivery of subsidy,” he said.

The state government has already faced this problem while rolling out transfer of old age pensions through bank accounts, as banks were not in a position to make available a robust mechanism for door disbursal of pensions.

In principle, the ruling AIADMK government is strongly opposed to any move to monetize and transfer in cash the subsidy element under the PDS, including kerosene and fertilizers.

The chief minister said it was essential to protect the consumer from fluctuations in the market price of LPG which was 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 increases and such increased amounts credited to the bank accounts to ensure that the consumers are not put to hardship,” Panneerselvam said.