Amendment to Indian Postal Act opposed

The Karnataka Couriers Association (KCA), a body of courier companies in Karnataka, has urged the Centre to reconsider the proposed amendment to the Indian Post Office Act.

The proposed amendments will lead to large-scale job losses in the industry as courier companies will not be allowed to carry documents weighing less than 300 grams.

"This will lead to the winding up of operations by many small courier companies whose main source of income is from carrying documents weighing less than 300 gm," KCA president V Suresh said.

The Union government has introduced a draft amendment bill to the Indian Post Office Act 1898 on its website ? www.indiapost.gov.in to elicit feedback. Through the amendment, the government proposes to regulate the courier industry and also ensure survival of the Indian postal department, he said.

Courier firms with a turnover of over Rs 25 lakh will have to contribute 10 per cent of their revenues as universal service obligation fee and all courier firms will have to pay registration and renewal fees. This will kill most courier companies as 90 per cent of the 2,500 courier companies in India are dependent on letters weighing less than 300 gm, he said.

The government proposes to levy Rs 10 lakh registration fee and Rs 5 lakh renewal fees for international courier companies and Rs 25,000 registration fee and Rs 5,000 renewal fee for domestic companies.

"In the guise of having an exclusive right over the matter, the postal department cannot cover its inefficiency and penalise the efficient private couriers," Suresh said.