Date:11/05/2006 URL: http://www.thehindubusinessline.com/2006/05/11/stories/2006051101800700.htm

Back Express industry concern over Postal Bill

Our Bureau

Hyderabad , May 10

Express Industry Council of India (EICI), the apex body of express trade companies including courier companies, has expressed concern about the proposal to amend the Indian Postal Act. They feel it would eliminate competition in the service segment.

At a meeting with the Secretary, Department of Posts, and senior officials last month, the proposed Indian Post Office (Amendment) Bill, 2006 was discussed in detail. And the industry expressed that the Bill would impact their ability to provide services.

They are concerned about the possibility of monopoly of postal services to expand to letters and documents up to 300 gm. Expressing concern over the new Bill, Mr R.K. Saboo, Chairman, EICI, in a statement said, "About 80 per cent of the courier industry revenue is generated through 10-300 gm documents. With this Bill, the industry will be ruined and about five lakh delivery boys and another 10 lakh support staff will be unemployed. This Bill is against liberalisation and competition".

This sector, according to Mr Saboo, has been recognised globally and by the Indian Post Office when it was established a separate organisation to provide Speed Post services.