Indian Mnistry says no to Postal Services corporatisation

The ministry of communications has rejected the proposal made by the Expenditure Reforms Commission to corporatise the postal department and decentralise tariff fixing powers for postal services. The commission had suggested that it could be included in the Indian Post Office (Amendment) Bill, 2002, which was proposed to replace the Indian Post Office Act, 1898.

Ministry sources said the proposal to corporatise the postal department would not be feasible since postal services were heavily subsidised by the government. “Postal services require Budgetary support. Therefore, corporatisation does not make sense,” ministry sources said.