Task force suggests three subsidiaries under postal department

A task force on leveraging the post office network of the country, Thursday suggested setting up of three subsidiaries as a part of a holding company under the postal department for extending services in the fields of banking, insurance and e-commerce.

The report of the task force headed by former cabinet secretary T.S.R. Subramanian was submitted to Communications and Information Technology Minister Ravi Shankar Prasad here Thursday.

"In all five subsidiary companies will be called strategic business units (SBU). Two other subsidiaries are for distribution of third party products and services like providing e-services for general public for bill collections and providing of application forms, documents and certificates on commercial basis," said an official statement.

"Another subsidiary is for delivery of government services like Aadhaar ration cards, Vikas patras, etc. on agency basis. It was also proposed that each SBU will have a separate independent board to operate commercially as a profit centre," it added.

Each one of the SBUs over time may go for public participation through a public issue. It was proposed that a new postal law may be enacted to give statutory basis for these operations.

"There will be a structured response to the recommendations of the task force on priority basis," said Prasad.