The Hindu : Front Page : Speed Post charges cut for local letters

Online edition of India's National Newspaper
Tuesday, Jun 12, 2007
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Front Page

Speed Post charges cut for local letters

Staff Reporter

NEW DELHI: The Department of Posts on Monday reduced local Speed Post charges for letters weighing up to 50 gm from Rs. 20 to 12 (including service tax). The service will be available in 1,200 towns across the country.

However, it has increased tariffs for parcels. For a parcel weighing above 500 gm and delivered in destinations 201-1,000 km away, apart from the regular charge of Rs. 45, Rs.15 will be payable for every extra 500 gm. Earlier the rate was Rs.10.

For a 51-200 gm parcel, Rs.70 will be charged for distances between 1,001 and 2,000 km and Rs. 80 for distances beyond 2,000 km. Earlier, the charges were Rs.60. For every additional 500 gm, Rs. 30 will be charged as against Rs. 20 now for 1,001-2,000 km and Rs. 40 as against Rs. 25 now for distances beyond 2,000 km.

Market-friendly

"We have reduced the local Speed Post charges by 40 per cent to make the service more market-friendly and more competitive. This will help us in taking on the challenge posed by private courier companies. We hope to see both our revenues and market share going up," said John Samuel, General Manager (Business Development & Marketing Directorate).

At all Speed Post centres, articles meant for the same town will be delivered the same day or on the next working day. The new service would prove a real boon to residents of the National Capital Region comprising Delhi, Gurgaon, Noida, Faridabad and Ghaziabad, which would be treated as "local" for purposes of tariff, he said.

The Department would soon buy two cargo aircraft to deliver postal articles in the northeastern States and metros.

Launched in 1986, Speed Post has a market share of 27 per cent, with monthly traffic exceeding 1.4 crore articles.

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