Date:21/04/2006 URL: http://www.thehindubusinessline.com/2006/04/21/stories/2006042104830100.htm

Back Govt proposes licence fee on courier companies

Our Bureau

Draft Bill moots independent regulator for the postal sector

Impact
All courier companies will have to register with the Government
Registration fee is Rs 25,000 for domestic operators and Rs 10 lakh for international
By regulating the courier industry, consumers may get more accountability

New Delhi , April 20

In a bid to regulate the largely unorganised Rs 3,500-crore courier industry, the Government has proposed to bring in a slew of measures, including imposing a one-time registration fee ranging between Rs 25,000 and Rs 10 lakh on private courier companies and setting up an independent postal regulator and a dispute settlement tribunal.

The draft Indian Post Office (Amendment) Bill 2006 also proposes to ask courier companies with revenues of over Rs 25 lakh to contribute 10 per cent of their annual revenues towards the Universal Services Obligation (USO) fund which will be used to offer subsidised postal services in economically unviable areas.

Draft Bill

The proposed draft Bill, while permitting courier companies to deliver letters, it has barred it from taking letters below 300 gm. Courier companies will also have to cough up an annual renewal fee of Rs 10,000 if the area of operation is within the country and Rs 5 lakh if the services include international delivery. While the courier industry has expressed unhappiness with the provisions of the Bill on the grounds that it would make their business unviable, the Department of Post (DoP) has said the policy is aimed at bringing transparency and accountability in the postal sector.

`Benefit to consumer'

The Government has in fact termed the proposed Bill as step to further deregulate the postal sector. "As per the existing laws, DoP has monopoly over "letters" irrespective of the weight limit. By permitting couriers to carry letters with some exceptions, the privilege of DoP is being diluted for giving benefit to the consumer. With competition comes accountability and responsibility," said a DoP official. The postal sector at present is governed by the century old The Indian Post Office Act, 1898. DoP also justified the registration fee on the grounds that it was a means to safeguard the consumers' interest and ensuring accountability of private couriers.

Regulatory authority

To create a level playing field, the proposed Bill has mooted establishment of an independent Mail Regulatory and Development Authority and a Mail Disputes Settlement Tribunal for adjudication of disputes in the industry. "Through this some mechanism for lodging the grievances to the consumers would be available. Independent regulator as in telecom, power and insurance sectors will fix a quality parameters like service criteria, deliverance parameters and from time to time performance evaluation would be done for the benefit of the general public," said a DoP official. The Bill has also set higher monetary and more severe penalties for violation of any of the provisions of the Act.