Ministry opposes amendment to Postal Bill

The industry ministry has said the proposed amendment to the Postal Bill, giving the department of posts the exclusive right over delivering letters weighing below 300 gm, was not justified.

The ministry also said that the levy of 10 per cent on the turnover of courier companies was not a correct move.

The ministry pointed out that the department of posts reached the remotest locations, unlike private courier operators.

"Since the niche segment stands carved out, weight-based determination of state control on distribution of letters is perhaps not fully justified," ministry sources said.

On the 10 per cent levy, the ministry is of the view that India is not a member of the Universal Postal Union which entails obligations on the members.

However, since couriers companies are making use of the liberalised policy, paying a levy would be appropriate only if the DoP also bore a similar cost. "The cost cannot be borne by the private courier companies alone," the source said.

On the other hand, DoP contents that the levy would subsidise the universal service obligation of the postal department and postal losses.

The industry ministry has also objected to the DoP proposal for charging registration and renewal fees from small and medium couriers.