Bangalore: The proposal to reserve the business of handling packages weighing less than 500 gm for India Post will affect movement of important messages, forms and other documents that need to reach destinations overnight, according to the Couriers' Association of Karnataka.

It says that exclusive handling of documents that weigh less than 500 gm by post offices will hit the business of courier companies, which provide employment to about 15 lakh people in the country, including 75,000 in Karnataka.

Association president V. Srinath said: "There are 400 small- and medium-size courier companies in Bangalore. There are also companies which collect packages from smaller courier agencies and fly them to destinations. Their business will be badly affected if Parliament approves the proposed amendments to the Indian Post Office Act. Ninety per cent of our business may be lost.''

The three-decade-old courier trade has picked up following liberalisation of the economy when the idea of "express delivery" caught on with the requirement of delivering important business documents overnight.

Courier companies are concerned over high registration fees, licences or penalties that may be introduced in the wake of the amendments to the law.

"Almost all courier companies are registered under the Companies Act and other laws, but if huge registration fees are imposed on us, many will not be able to pay,'' Mr. Srinath said.

In many cities, there are courier companies which only serve three or four neighbourhoods, where they are familiar with small businesses and residents. This speeds up delivery of documents.

Unlike post office staff, they make several attempts to deliver a package if an addressee is not at home or if a shop is found closed. Despite fax and email, delivery of documents is necessary for many business transactions.

Those in the courier business say that though the Postal Department has a Speed Post service, it does not cover smaller towns served by courier companies. According to them, another advantage to customers is that courier counters remain open late.

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