'Postal Act amendment will cripple courier sector'

Condemning the proposed amendments to the Indian Post Office act, 1898, courier companies in four southern states today announced the formation of 'The Association of Express Industry - South India' to get their grievances redressed.

The office bearers of the association told reporters here that a joint action committee would be formed and a memorandum would be submitted to the Centre to reconsider the decision, which, they said,would be detrimental to the interests of the courier industry and throw at least 15 lakh persons out of jobs.

Their major grouses are the proposed restriction on carrying letters only above 500 grams, high registration and renewal fees of Rs 10 lakh and Rs 5 lakh respectively annually and 10 per cent of the gross revenue to be paid as universal service obligation.

Association president S Ahamed Meeran and vice-president M Kannan said more than 80 per cent of courier companies dealt with letters which were less than 500 grams. The proposed amendment would cripple the courier industry, they said.

The industry was a highly labour intensive one and this move would throw lakhs of people out of work, they said.

Kannan and finance advisor to the association Venkataraman said the industry contributed Rs 500 crore as service tax annually, besides income tax of over Rs 200 crore per year.