Govt. to formulate new postal policy

Date: 08-02-1999 :: Pg: 10 :: Col: d

By Our Special Correspondent [The Hindu]

NEW DELHI, Feb. 7.

After a gap of about seven years, the Government has once again opened the file on formulating a new postal policy. At the meeting of the Parliamentary Consultative Committee, the Union Communications Minister, Mr. Jagmohan, announced the Government's intention to formulate a new postal policy.

As the present Government tends to avoid the term `committee', it would be reasonable to assume that a `task force' would be set up to review the postal law, suggest a `pragmatic' tariff and establish parameters to improve franchising, postal banking and other services. But he avoided spelling out that Government's intention to legalise courier agencies. The Indian Postal Act has already been reviewed by a committee which submitted its recommendation in 1989. Incidentally, at the same forum (consultative committee meeting) in 1992, the then Communications Minister, Mr. Rajesh Pilot had announced the finalisation of the approach to a national postal policy. But the policy was later sabotaged by the combined efforts of private courier agencies whose operations were sought to be severely limited.

The courier companies have been able to operate much like the cable TV operators - without any legal authority to carry letters. The courier companies took advantage of the Indian Post Office Act, 1898, which does not define the term ``letter.'' As a result, when courier companies appeared on the scene, the Government could not prosecute them for infringing the monopoly of the postal department in carrying mail. In most cases, it was not possible for the Government to secure convictions and where the offenders were convicted, the paltry penalty of Rs. 50 for the first conviction and Rs. 500 for subsequent convictions was not deterrent.

Though the Government wanted to liberalise the Postal Act to enable private companies to carry letters within certain parameters, the courier companies felt otherwise. The definition of ``letter'' was sought to be worded in a way designed to bar them from carrying light letters, considered the most lucrative segment. On the other hand, the postal department insisted that the barring of letters beyond a certain weight was justified. It was contended that monopoly to the postal department over carrying time-sensitive letters would help it offset the deficit incurred from carrying ordinary mail. As both sides did not agree on this basic issue, the new postal policy was allowed to die unsung.

This time around it remains to be seen whether the Government would be able to provide legal acceptability to couriers on liberal terms as had been the case in the U.S. (1979), Canada (1981) and the U.K. (1981). Since the early Nineties, couriers have flourished and gained in financial muscle. It would be reasonable to assume this time they will be able to influence the Government and manage amendments in the Postal Act that are acceptable to them. This would hopefully ensure that a new postal policy will see the light of the day.



First Created - February 9, 1999