Express companies dread Indian post domination
The courier companies are worried over the impact of the proposed Indian Post Office (Amendment) Bill, 2002, on their business prospects. The proposed amendments, they fear, will monopolize express delivery of letters and documents with the Department of Posts, hitting their business. (10/4/2002)
The proposed changes in the Post Office Bill are ‘regressive’ and make little sense at a time when the trend is towards ensuring a level-playing field for all market players, according to Mr Sandip Shah, the immediate past President of the Express Industry Council of India (EICI). Mr Shah, who is also the Chairman and Managing Director of Elbee Express Service, termed the proposed legislation ‘draconian’.
He, however, acknowledged that the Postal Department had to protect its revenue streams to meet its social obligations. It could do so by maintaining its monopoly over basic services. Mr Shah was speaking at a press briefing here today. The EICI is the apex body representing the express companies operating in India. The amendment Bill, which was tabled in Parliament in May 2002, has been referred to a Standing Committee attached to the Commerce Ministry and headed by Mr Somnath Chatterjee, MP. The EICI, which has held talks with both the Standing Committee as well as with the Postal Department, is optimistic that its viewpoint will receive a fair hearing. The courier companies have also raised objections to the proposed move to get them registered with the Department of Posts which itself runs an express mail service (EMS).
The Chairman of Blue Dart, Mr Tushar Jani, was of the view that the customer should be able to opt for the service of its choice. Mr Jani, who is the Chairman-elect of EICI, cautioned that the proposal to register with the Postal Department, which itself runs an EMS, could lead to arbitrary decisions on the part of the Department of Posts. According to the Managing Director, TNT India Pvt Ltd, Mr Jinendra Sancheti, the move went against the grain of liberalization and was a backward step.”
