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Concession to private couriers

New Delhi: The Government has proposed to reserve the lucrative letters segment of up to 150 gm for the postal department and allow private players to carry these letters only if they charge up to five times more than the Government tariff.

"The Government shall have exclusive privilege of conveying by post from one place to other all articles weighing up to 150 gm," according to the Cabinet note on the proposed Indian Post Office (Amendment) Bill, 2007.

The note proposes that private players would have to charge five times for unregistered mails and 2.5 times in case of express mails compared to the Government tariff.

This means for unregistered non-express mails, if the postal department charges Rs.5 up to 20 gm, private couriers would have to charge a minimum Rs.25 to operate in this reserve areas. For a 150 gm letter while the Department of Post charges Rs.40, private couriers will charge Rs.200. For speed posts, the proposed minimum tariffs for private courier companies are 2.5 times the tariffs of the DoP. So if DoP charges Rs.20 for a weight up to 50 gm, private players like Blue Dart will have to charge Rs.50 for the same for a local delivery. — PTI

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