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Ambar Singh Roy

KOLKATA, July 15

THE Department of Posts (DoP), over the next few years, proposes to bolster all the resources under its command to "carry whatever needs to be moved from one place to another'', according to Mr S.C. Dutta, Secretary and Chairman of the Board, DoP.

Mr Dutta told Business Line that in the months ahead, several new initiatives would be rolled out. He cited the instance of China Post which has ventured into logistics business and carries, for example, seeds in bags weighing up to 1,000 kg.

Already, DoP has launched several value-added, revenue-generating initiatives under the India Post umbrella. These include Speed Post, Business Post, Media Post, e-Bill Post, Express Parcel Post, Retail Post and Greetings Post. A proposal to embark on logistics business is at an advanced stage of implementation.

Mr Dutta said the new business initiatives were aimed at augmenting revenue so that the gap between income and expenditure was met. The Planning Commission has mandated that this should be made possible within the next five years.

"It is our firm belief that with the infusion of technology and our focus on business development, this will become a reality within the given time-frame'', he said.

DoP earned revenue of Rs 3,850 crore in 2001-2002. The revenue target for the current fiscal has been pegged at Rs 4,200 crore. Last fiscal, the gap between DoP's revenue and expenditure was about Rs 1,500 crore.

Over the next few years, new businesses are expected to account for 65-70 per cent of DoP's revenues. He said basic postal services would have to be provided even if they were not revenue-positive. "We will have to meet our social obligations, the costs of which will be met through cross-subsidisation''.

As part of its human resources initiatives, DoP will reduce 10 per cent of its workforce over a five-year period. In the current fiscal, about 10,000 posts would be abolished.

Existing personnel were being trained and re-skilled such that "they are able to interact with our customers meaningfully and are fully prepared to offer services which meet the highest quality standards''.

Mr Dutta said the services offered under the Business Post brand had great potential for revenue generation.

Revenue from Business Post went up from a mere Rs 26 lakh in 1996-97 to Rs 166 crore in 2001-02. A 40-per cent growth in revenue generation from Business Post has been targeted during the current fiscal.

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