Dear Comrades,
The department of posts has initiated external consumer audits to understand the growing needs of urban customers worried over decline in its market share in mail service business that it once dominated.
India Post will conduct these audits primarily in its urban post offices to gauge market sentiments of the urban population, which is rapidly switching to private courier service providers.
“The idea is to build India Post brand for greater acceptability in cities,” said an official with the department. In the recent years, the department’s revenues from its postal operations have been on the decline. The specific areas of business where the department’s revenue receipts appear on the decline are ordinary post, money-orders and postal-orders.
There has, however, been recent improvement in the department’s revenue figures. Figures as on October 2010 show the department’s revenue receipts on postage realised in cash at Rs 1,321 crore, which is a 11% increase to the figure as on October 2009.
However, commission on money-orders and postal-orders have made only marginal improvements, a concern which has prompted the department to initiate major overhaul in the way it handles mailing operations.
To arrest the slide in business, India Post has initiated the process of redesigning its existing mail network. It has introduced innovations such as radio-frequency identification (RFID) technology in mail processing for better tracking of mail bags and articles to draw high-end and urban mail customers.
In the 11th plan period (2007-12), the department has undertaken measures to improve the quality of mail operations, including automation of mail processing activities, induction of dedicated freighter aircraft for transmission of mail and restructuring of existing mail network.
“These new initiatives are expected to result in better quality of service which in turn, would help the department in increasing mail traffic and revenue,” said the official, requesting anonymity. The department recently conducted a customer satisfaction survey at a select few top-tier urban centres. The department during the current fiscal is expected to generate revenues of Rs 6,956 crore, way below its estimated working expenses of more than Rs 10,552 crore.
The department’s inability to arrest its declining revenues has come under criticism from the Parliament as well. “We strongly recommend analysis of the position and taking up of effective steps to increase the revenue receipts particularly when the working expenses of the department are increasing year after year,” said a Parliamentary Standing Committee report.
Ecomnomic Times
