Postal department to unveil franchising plans
To cut losses and increase its reach, the Department of Posts has recently unveiled plans for franchising postal services. For this, the Department will soon launch a pilot project in 100 cities across India. The franchises will be tested for financial viability, i.e., whether they can be self-supporting if not profit-generating, without affecting the Department’s existing network. Ten of the cities earmarked for the project are in Gujarat, said Chief Postmaster General of Gujarat Circle Vijayalaxmi Sheth. ‘‘We have identified ten spots for franchises and will be inviting applications for the same shortly,’’ she said.
‘‘Parties who apply for a franchise will be required to have passed Class XII. Postal pensioners who own a computer and have a premise in place would be given preference. There are also some mandatory requirements like a character certificate, a bank guarantee of Rs 10,000 and a ready business plan. Those who meet the specified requirements will then be imparted training before the open their postal franchise outlet,’’ she said.
Link post offices for the franchise outlets have also been identified and respective post masters have been apprised of the move, said B K Mehta, Additional Director of Postal Services, Gujarat Circle.
‘‘Initially services like sale of postal stationery, booking of registered post, speed post articles and money orders will be handed over to the franchises. They will also run postal life insurance services and provide facilities like receiving payment for phone bills and power bills whereever the state electricity board supplies power,’’ said Mehta. ‘‘The franchise will be paid Rs 2 for booking Registered Post and Speed-Post articles, Rs 3.50 per Money Order transaction and five per cent commission on sale of stamps and other postal stationary.
Franchises will also get 40 per cent of the commission charged by the Department on payments received, like phone and power bills,’’ he added.
Mehta admitted that the move has invited opposition from unions who see it as a harbinger of privatisation of services through the franchise route.
‘‘However, no representations have been made at the Circle level,’’ he added.
