The Hindu : National : New postal policy on the cards, Lok Sabha informed

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Friday, Aug 05, 2005

National

National

New postal policy on the cards, Lok Sabha informed

Special Correspondent

NEW DELHI: The Central Government is formulating a new postal policy aimed at providing more autonomy to the Postal Services Board (PSB) and help it meet the twin challenges of becoming commercially viable while performing its social role of reaching out to the less privileged at low rates.

Minister of State for Communications and Information Technology Shakeel Ahmad informed the Lok Sabha on Wednesday that the move to update the provisions of the Indian Post Office Act, would complement the empowerment of the PSB to help it respond to changes in the market place.

A major in-house exercise has been initiated to review the system in terms of structure, products, resources and pricing to identify the best way for the department to lessen its dependence on Budgetary subsidy while reaching out to the country's hinterlands.

In a written reply, Mr. Ahmed did not set a timeframe as the exercise involved inter-departmental consultations. India has the largest postal network in the world and 89 per cent of it is in rural areas.

While continuing to reach out to rural areas, the postal network has over the years adapted itself to the changing needs of urban areas.

The market share of speed post is 11 per cent in a competitive market and that of India Post is about 50 per cent if all mail products are put together, said Mr. Ahmed.

The department clarified that no union, recognised or otherwise, had given any notice for a strike and postal operations were going on smoothly throughout the country.

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