The Hindu Business Line : Pvt courier firms can also access USO fund: DoP

To end monopoly
The 300-gm limit set on carrying letters for the courier companies is a first step taken to dilute the monopoly of DoP.
The Bill will boost small and medium level courier companies and its employees as they will be able to legally carry letters.

New Delhi , April 20

The Department of Post (DoP) today said that the Universal Services Obligation (USO) fund proposed in the draft Indian Post Office (Amendment) Bill 2006 will also be available for private courier companies if they offered services in rural areas.

Official sources in the department also clarified that the 300-gm limit set on carrying letters for the courier companies is a first step taken by the Government to dilute the monopoly of DoP and in future the entire segment may be opened up for the private courier companies.

Defending the provisions of the draft Postal Bill, Dr U Srinivasa Raghavan, Secretary of DoP, said the move was an attempt to regulate the disorganised courier sector even as DoP gives up its monopoly on carrying letters.

"The provisions of the Bill are not anti-industry or anti-consumer as is being claimed by some quarters. In fact it is entirely the opposite. We have voluntarily given up our right to carry letters to accommodate private courier companies. The Bill will also make private courier companies accountable which will be beneficial to the consumers."

He said the Bill will boost small and medium level courier companies and its employees as they will be able to legally carry letters, which until now was solely the right of the postal network.

"We have excluded small and medium courier companies from contributing to the USO fund. As far as the large courier companies are concerned let them also take part on the economic growth of the country rather than cherry picking to offer services in lucrative areas only," Dr Raghavan said.

`Open for discussion'

The courier industry has expressed concern with the draft Bill on the grounds that it would impact their revenues.

"I am open to discuss the issues with the industry. We are sure that once the Bill becomes a law, the entire sector will be better off- standards will be set, USO fund will ensure proper postal services to every corner of the country, the proposed regulator will bring in accountability and more employment will be generated," said the DoP Secretary.

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