Sibal to DoP: Launch premium logistic services within 6 months

The Minister directs DoP to focus more on parcels and logistics services as the market for letter mail is on the decline across the globe

The Department of Posts has been asked to introduce premium logistics services in select 80 to 90 cities within six months to tap the expanding e-commerce market in the country and enhance its revenue by 15%.

"India Post must launch business projects that earns additional revenue of not less than 15% for the department," Communications and IT Minister Kapil Sibal said in latest direction to DoP.

The Minister, in the order, directed DoP to focus more on parcels and logistics services as the market for letter mail is on the decline across the globe.

"To get a strong foothold in this segment, India Post must launch a premium parcel and logistics service in selected 80 to 90 cities," Sibal said.

At present India Posts operates speed posts services on the basis of hub and spoke model where all mails booked under speed post are send to the hub and then disseminated to the connected offices under.

"There are around 89 post offices which operate as hub where premium parcel and logistics can be delivered," a senior official Communications and IT Ministry official told PTI.

The official added that there are around 1.55 lakh post offices across country that can provide reach to the e-commerce markets.

Among other things, DoP has been asked to develop customised parcel booking and accounting system, a mechanism for secured transmission of parcels and logistics and a dedicated infrastructure for these premium services.

"Secretary (Posts) in consultation with Members Postal services Board and other senior officers may plan and execute these business proposals in six months," the order said.

Minister will hold the first review of the project in the last week of June.