India: Postal dept gets capitalist mail
It was one department which withstood privatisation in the public sector for years. But now, the Government is planning to experiment with the franchisee system in the postal services.
About 100 licenses are being given out to private players willing to run post offices in the country.
“The Bill to amend the Postal Act will come in the winter session,” says Minister of State, Communications, Dr Shakeel Ahmed.
The franchisees will provide all the counter services including speed posts and money orders. They will also be allowed to execute a number of banking services done across the counter in post offices like cheque collection, delivery (for the moment) and transmission facilities will be carried out only by the postal department.
So while the Government wants to review this scheme after six months, trade unions say this could mark the entry of private players in the oldest service provider in the country.
“It certainly is moving towards privatisation,” says Secretary General, National Federation of Postal Employees, C C Pillai.
However, despite these objections the Government has asked its 19 postal circles to identify suitable locations. Initially big cities and towns are being considered and the scheme could start from the early next year.
