India: Reciprocal services between post & telecom cease
India: No more free lunches for postal, telecom depts
From BUSINESS LINE, September 14th, 2001
By Ambar Singh Roy KOLKATA, Sept. 13. IN AN economy determined by market forces, there
can be no free lunch. Not even for sibling organisations under the same Ministry. Come
October 1, and the arrangement for free services on reciprocal basis
between the Department of Posts and the Department of Telecom, nay
Bharat Sanchar Nigam Ltd (BSNL), shall cease to exist. From then on, BSNL will have to pay the Department of Posts for all
services – such as collection of telephone bills, service money
orders, occupying space, etc – availed through the latter’s network
and infrastructure. The Department of Posts, too, would then have to pay for telephone
calls which have been free-of-cost till date. The move follows a policy decision of the Department of Posts to do
away with all kinds of free services. “We are moving with the market
forces and getting commercial-minded. Besides, we tend to become lax
while offering a free service. Levying a charge would ensure direct
accountability to deliver. This, in turn, would help improve the
quality of service, too,” sources said. They confirmed that the new arrangements would auger well for the
Department of Posts and facilitate a sizeable increase in its
revenue earnings. “We shall take a service charge of 2.5 per cent on
the total collections of telephone bills collected through the
postal network. Rent shall be charged on space occupied by telegraph
machines at post offices. Commissions will also be charged on
service money orders,” they said. Till 1974, the Post Master General in a circle was the head of both
the postal and telecom departments. Thereafter, even through the
bifurcation of the Postal Board and Telecom Board took place in
1984, the free and reciprocal service arrangements continued. Mails still mention “On P&T Service”.
The Department of Posts has not restricted its commercially-oriented
initiatives to sister departments alone. It has initiated a process
aimed at charging the State Governments a 10 per cent service charge
for distribution of revenue stamps from post office counters. Revenue stamps are indented by the State Governments from India
Security Press, Nashik, and retailed through the postal system. The
service is presently rendered free by the postal administration. However, for this to happen it would be necessary for the Centre to
amend some provisions of the law with the concurrence of the State
Governments. Discussions in this regard are presently on. Other initiatives aimed at augmenting revenue generation include
encouraging bulk customers to switch over to the use of franking
machines in place of postage stamps. Disbursement of pension under the Employees Pension Fund scheme
through the postal system will no longer be free. Hitherto, post
offices would disburse the pension, raise a bill later and the money
disbursed would be adjusted over the years. Henceforth, the amount
to be disbursed would be collected in advance from the organisation
in question even as the postal administration shall collect a
handling charge of 2.5 per cent of the total pension amount.
Copyright 2001 Kasturi & Sons Ltd (KSL).
Source: World Reporter (Trade Mark) – Asia Intelligence Wire.BUSINESS LINE, 14th September 2001
