The government is planning to separate the
functions of policy making, regulations and
operations of the over 150 year-old
Department of Post (DoP).
Sources in Ministry of Communications and
IT said Kapil Sibal has asked for setting
up a body to oversee the unbundling of DoP's
functions.
An independent body named Postal Development Board (PDB) will be
responsible for the overall development and governance of the
Postal sector, they added. The PDB will also draw a road-map for
unbundling of postal department functions.
"The idea is to develop Indian postal sector as a full-fledged
market, bring in more service providers to enhance employment
and contribution to nation's GDP," a senior ministry official said.
market, bring in more service providers to enhance employment
and contribution to nation's GDP," a senior ministry official said.
A recent review meeting of the entire sector, chaired by Sibal,
found that in some European countries' the sector contributes
between 0.6-0.9 per cent of their GDP.
found that in some European countries' the sector contributes
between 0.6-0.9 per cent of their GDP.
However, the contribution of the estimated Rs 15,000-crore
Indian Postal sector is much lower. Private players have been
demanding unbundling of the department's functions for a
level-playing field and growth of the sector.
Indian Postal sector is much lower. Private players have been
demanding unbundling of the department's functions for a
level-playing field and growth of the sector.
At present, DoP -- which has around 5 lakh employees -- is
the sole body responsible for policy making, regulations and
providing postal service.
the sole body responsible for policy making, regulations and
providing postal service.
The over 100-year old Indian Post Office Act, which governs
the sector, bars any individual or entity from delivering
letter for commercial purpose.
the sector, bars any individual or entity from delivering
letter for commercial purpose.
The business of private courier companies is built around
delivering documents, parcels and others items which do not
fall under the category of 'letter'.
delivering documents, parcels and others items which do not
fall under the category of 'letter'.
Sibal has asked DoP to create a framework to support small and
medium postal operators and new models to encourage entrepreneurship
in the sector.
The minister has also instructed DoP to constitute a Postal
Advisory Board (PAB) which should have representation from
government, industry players, academics and other stakeholders.
Advisory Board (PAB) which should have representation from
government, industry players, academics and other stakeholders.
The role of PAB will be to provide inputs to PDB on policy matters.
PDB will be set up under Secretary (Posts) and will include Secretaries
of Department of Economic Affairs, Department of Electronics
and Information Technology, Department of Commerce and two
members from Postal Services Board.
PDB will be set up under Secretary (Posts) and will include Secretaries
of Department of Economic Affairs, Department of Electronics
and Information Technology, Department of Commerce and two
members from Postal Services Board.
Source : http://www.deccanchronicle.com
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