The Hindu Business Line : Postal Dept racing to become self-reliant

AS the Postal Department races to meet the 2007-08 deadline to become financially independent, it seeks to leverage its unmatched reach across the country by selling premium products like insurance policies and financial products to bridge the gap between the revenue earned and the expenditure.

Senior officials from different circles are meeting in New Delhi to help draw a `Vision 2020' plan, according to Ms Vatsala Raghu, Principal Chief Postmaster-General, Tamil Nadu.

Speaking to newspersons in Coimbatore, she said that the Department's traditional mail delivery work was its universal service obligation.

The Department was not pricing its services according to the cost in view of its social obligation, which has resulted in deficit that has to be made good.

The Department was earlier getting Budgetary support but has now been mandated to become self-reliant by 2007-08.

She also said that the Department has empowered the heads of postal circles to enter into new ventures to generate additional revenue, like sale of application forms, mobile phone prepaid cards, insurance policies, and savings products.

In some circles, like Maharashtra, even payment of electricity bills is being accepted.

In Tamil Nadu, she had held preliminary discussions with the TNEB for engaging the postal staff to do works like meter reading and bill collection.

The postal staff would also be involved in activities like electoral rolls verification.

Ms Raghu said that in Tamil Nadu, the Department has signed an MoU with Nabard for distribution of micro-credit as a pilot project.

The viable areas will have to be identified and the postal personnel trained for this work.

On the revenue the Department had earned in Tamil Nadu Circle from the marketing of premium products like insurance policies, savings products, e-bill post, she said that last year the revenue generated was about Rs 92 crore. This year, the target is Rs 130 crore.

On the steps taken to safeguard the interest of depositors, the Department has installed a LAN system and back office operations have been computerised. There were also mandatory inspections by senior officers.

Earlier, launching the `grand alliance' with BPL Mobile to offer some of its products through post offices, she suggested that BPL Mobile could look at the e-bill post service being offered by the Department that has been availed of by some of the private telecom operators in Chennai.

The Department recently launched the logistics post service between Chennai and Hosur, which it plans to extend to other key routes.

Mr R. Suresh Kumar, COO, BPL Mobile, Tamil Nadu Circle said that in association with the Department, the company would be offering services like special postal helpline for obtaining information regarding different postal services, exclusive prepaid card for senior citizens for Rs 499 with six months validity along with free incoming roaming while in Chennai, starter packs, and recharge coupons of `newmots' prepaid cards, payment of post-paid mobile phone bills at post offices, and special ISD prepaid card for international money transfer facility at post offices.

The products and services under the new plans would be available in post offices across the State from June 13 onwards.

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Postal Dept racing to become self-reliant