Tag: India

Indian courier services could become dearer

Posted by | Apr 18, 2007 | |

Sending packets through private courier companies could get expensive, with the Government proposing to stipulate higher tariffs for mails less than 150 g

The draft Postal Bill, which is expected to be tabled in the ongoing Budget session, has proposed to impose a tariff on mails carried by courier companies that is fives times the charge taken by the Postal Department

So, while a 20 g mail is charged Rs 5 by the post offices, the same will cost Rs 25 if you send it through a private courier. The rationale for the differential tariff is that the Government is giving up its monopoly on low-weight mails

While the earlier draft of Postal Bill had completely barred private courier companies from carrying packets weighing more than 300 g, the revised proposal removes this ban but on the other hand imposes a higher tariff rate for packets that weigh less than 150 g

This means that consumers could cough up as much as Rs 200 for sending a packet weighing 140-150 g through private courier companies even as the post office will charge only Rs 40

Currently, charges taken by courier companies are not regulated

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Blue Dart Revenue Up at 182.31Crores

Posted by | Apr 17, 2007 | |

Blue Dart Express Limited, South Asia’s largest integrated air express courier and package distribution company, today declared its financial results for the first quarter ended March 31, 2007 at their Board Meeting.

Income from operations for the 1st quarter 2007 was Rs. 181.66 crores, an increase of 19.53% over the corresponding quarter of the previous year, and profit before tax for the quarter was Rs. 23.43 crores despite the induction of two Boeing 757 aircraft in the 2nd quarter of 2006.

Anil Khanna, Managing Director, Blue Dart Express Limited said, “Strengthening of our infrastructure, especially our aviation system, is critical to meet increasing demand and ensuring service excellence. The induction of two B757 freighters provides greater capability to service our customers, and reinforces our commitment to facilitate India’s trade and commerce. In the last quarter Blue Dart handled approximately 17 million shipments weighing over 42,000 tonnes.

“This year we have also planned to add 57 new facilities, 11 of which have already been made operational in the last quarter. Further, our ground network is being fortified to offer customers a one-stop distribution capability unmatched in the country. Currently, we are the only player in the domestic air express segment offering an unrivalled payload of 250 tonnes each night through our dedicated fleet of 2 B757s and 4 B737s”, Anil Khanna added.

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Oriental Bank and India Post in pact for rural lending

Posted by | Apr 17, 2007 | |

Oriental Bank of Commerce on Tuesday signed an MoU with India Post to extend rural credit in Chandrapur and Warora districts in Maharashtra; and Mapusa, Vasco and Vadgaon districts in Goa

“In the pilot project, the bank will provide short-term consumption credit worth Rs 20,000 per beneficiary,” said Mr Ravi Taneja, Deputy General Manager, social lending and priority sector department, Oriental Bank of Commerce

“The loans will be collateral-free and not require a guarantee. The repayment period will be up to two years,” Mr Taneja added

Post-offices will identify prospective borrowers, assist in the filling up of loan application forms and forward them to the bank branch concerned for disbursement. The bank will pay a commission of Rs 600 per loan to India Post and also decide on the status of the loans

The post-offices will help in opening savings bank accounts for potential borrowers. They will assist in recovery of loans but will not be liable for defaults or any dispute arising between the borrower and the bank

“The postmen who understand the local flavour and are acquainted with the local people will be deployed for the execution of the scheme,” said Col. K.C. Mishra, Postmaster General, India Post

India Post is already working with Corporation Bank in Goa. It also has an agreement with Union Bank of India and plans to sign MoUs with Dena Bank and Bank of Maharashtra

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DHL launches trade advisory services

Posted by | Apr 17, 2007 | |

DHL announced on Monday the introduction of trade advisory services, which provides a host of facilities that will expand the comprehensive suite of products under the global DHL Global Trade Services (GTS) platform

The new services complements other key features of the DHL Global Trade Services, which comprises importer and exporter of record services, customs brokerage services, and trade automation services, said a DHL release

Since its launch in late 2006, Global Trade Services has helped to facilitate cross-border trading by aiding businesses manage complex duty regulations, shorten lengthy business processes, and lessen the stress of global trade management

Trade advisory services comprises four distinctive features covering supply chain security services, trade opportunity services, customs and trade capacity building services, and goods classification services

Supply chain Supply chain security services focus on two major security initiatives, including the US Customs and Border Protection authority’s C-TPAT (customs-trade partnership against terrorism) and AEO (authorised economic operator), which is initiated by the World Customs Organisation

Trade opportunity services leverages DHL’s network of customs professionals and experience of operating in different markets to simplify trade processes

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Indian government proposals may rip the courier bag

Posted by | Apr 17, 2007 | |

The Indian government wants to reserve the right to carry letters, book post and parcels weighing up to 150 gm for its postal department. Private courier operators may be allowed to service this sector, but they will have to charge five times the postal department’s tariff for the same articles. In a cabinet note on the proposed Indian Post Office (Amendment) Bill, 2007, the department of posts in the ministry of communications & IT has also said that in the case of urgent or exclusive mail services, courier companies will have to charge 2.5 times the Speedpost or Express Mail Services rates. The ministry expects to introduce the Bill in the Budget session of Parliament, scheduled to reconvene on April 26. Industry sources said the move would make private courier services uncompetitive, as their services would be significantly more expensive than that of the postal department. For example, if the postal department charges Rs 100 for a packet weighing less than 150 gm, private courier operators will have to charge a minimum of Rs 500 for the same package. A bulk of the mail carried in India and originating within the country weighs less than 150 gm. The draft bill, however, makes a concession from the government’s earlier plan, which sought to reserve all postal articles up to 300 gm for the postal department. Costly Parcel

Courier charges to go up 10% of courier company revenue will be earmarked for USO fund Competition Commission calls Bill anti-competitive Watchdog to be set up; TDSAT to settle disputes Courier industry size: Rs 7,000 crore Annual growth: 25% Competition Commission of India (CCI) member and acting chairman Vinod K Dhall said, “There is a major competition issue here. This sector does not require economic regulation.”

The Rs 7,000-crore courier industry, growing at 25% a year, has called the proposed move by the government retrograde. The government, however, is of the view that the move will help generate additional revenue for the central government. The bill also proposes to make the registering of courier companies mandatory. There are also provisions to allocate a part of the revenue of courier companies to a universal service obligation (USO) fund.

The draft Bill also seeks to set up a three-member Mail Regulatory & Development Authority to regulate the sector.

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