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Our Bureau

Kolkata , Feb. 19

THE Department of Posts hopes to generate a revenue of Rs 1,700 crore from non-core and premium services during the fiscal ending March 31, 2004. In 2002-03, the revenue generated from non-core and premium services was around Rs 1,600 crore.

Stating this at a press conference held here on Thursday to announce a strategic tie-up with Oriental Insurance Company (OIC), the Chief Post Master General of the West Bengal Circle of the Department of Posts, Mr P.K. Chatterji, said the income from non-core and premium services includes revenue from Speed Post operations but excludes earnings from small savings schemes.

Mr Chatterji said that income from universal postal services was going down over the last few years. To augment income, the postal administration was leveraging on its wide network and manpower resources to offer premium and value-added services. These include tie-ups with cellular services providers for collection of bills and an arrangement with Western Union for international money transfers, among others.

Today, the Department of Posts, West Bengal Circle, announced a tie-up with OIC for retailing the latter's non-life products through the post offices network. To begin with, the pilot project will encompass 160 post offices in three postal divisions - Suri, Burdwan and Murshidabad - in West Bengal. Nine non-life products of OIC such as Nagarik Suraksha Policy, Personal Accident Policy, Cattle Insurance Policy and Raj Rajeshwari Mahila Kalyan Bima would be sold through the designated post offices. At a later date, the service is likely to be extended to all post offices across the State.

The Department of Posts would get a commission of 15 per cent of the premium that is collected. Premium collection in the West Bengal Circle has been estimated at Rs 20 crore in the first year. As such, the postal department's commission would be Rs 3 crore. Cumulative sales of OIC's non-life products through the postal network on a nationwide basis is expected to be of the order of Rs 1,000 crore in the next five years.

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