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ShareWhile the courier industry is booming at 25% annually, the postal department is shrinking by 10% every year
DELHI: While the domestic courier industry in India is booming at a 25% annual growth rate, the amount of mail handled by India's largest 'courier firm', the India Post, the government-run postal service, has shrunk by a whopping 50% over the past five years.
There aren't any better examples to capture the collapse of government-controlled institutions at a time when the Indian economic growth is being praised around the world.
In heavy losses, the postal department is resorting to desperate measures as the neighbourhood post offices give way to the private courier firms. To make up for the lack of performance, the government is proposing to introduce a new bill that would provide state monopoly in some key areas to the government's post offices, which would further wean away professionalism and competition.
"My mother Anita Malothra was having a monthly income scheme and was getting interest every month there. She applied for transfer of her MIS account on sixth May 2008 to head post office. Till today eight July 2008 that MIS passbook and related documents have not reached post office. I was told that the book was sent to head post office but no one is giving me any date or registration number," says Puneet Malothra.
He adds, "The post department is not at all interested in the comfort of the people."
Rashi Singh says, "My exam for SBI Clerical Staff Post was on July 6, 2008 but the letter sent by the authorities reached me on July 8, 2008 because of the slow service of the Post Department, which resulted in me not being able to give the exam." She adds,
"Now what can do. Only next time I will opt for some other reliable service."
Also the Speed Post, which is supposed to be one of the fastest and best services of the Indian Post, is under major criticism from the people. "I sent a speed post money order to be sent to my wife who was under treatment on May 26, 2008. As it had to be delivered at once I opted for speed post but the money did not even reach after ten days," says Ankit Mathur.
Vijay Kumar, chief operating officer of Express India Courier Institution, says the Postal Department is not very consumer focussed which is one of the main reasons it is going down."
A head post office official, who spoke on the condition of anonymity, says, "Many softwares that we have in the office computers are hard to figure out. Very few people are actually expert in running them. There is severe shortage of staff in the post offices which leads to slow service." He adds, "The salary of a postman is very less because of which many young people do not want to join this profession, also unlike the people working in courier services who get motorcycles, many of the postmen are still restricted to foot or cycles."
According to Comptroller and Auditor General's 2007 report on the Department of
Post the net loss for the year ending March 31, 2006 was Rs 1,207.71 crore. It also states that the mail traffic declined by 50% over the last five years. Also, 16 out of 20 postal services have continued to incur losses over the years.
On the other hand, the domestic courier service is Rs 4,000-crore industry, which contributes Rs 600 crore in taxes and employs over one million people.
Vijay Kumar says the courier industry is expected to double by 2012. "The postal department is going down because of the better competition including phones which are used at a very high rate. The Postal Department's premium segment is still growing at a good rate." He adds, "The Post Department has great positives like having a very big network and they should open it up to the private services by charging a premium rate."
The proposed Indian Post Office Bill will grant an exclusive privilege to the postal department to "convey letters up to 150 grams by post from one place to another and all the incidental services of receiving, collecting, sending, dispatching and delivering all such letters." Vijay Kumar in response says, "The bill has not yet been passed, but if it is then it will be very bad for the Indian economy. In today competitive scenario courier services are very much needed."
