India Post to be transformed into logistics firms : Jyotiraditya Scindia

NEW DELHI : Indian Government is looking to transform India Post into a logistics company and increase its revenue by 50-60% in the next 3-4 years, Communications Minister Shri Jyotiraditya Scindia said on Wednesday.

This assumes significance as the government-owned India Post is into delivering mails and letters besides having banking and deposits services. The post department’s transformation is crucial, given the competition it is witnessing from private logistics players with regard to its bread and butter business of delivering parcels, mails and letters.

“We need to transform ourselves from just a mail business and a letter business. We have got to look at route optimisation, multiple sources to be able to transport our services,” Scindia said at an event by Public Affairs Forum of India (PAFI).

Shri Scindia said the government will be looking at all potential services to increase the revenue of India Post, given that the department has the potential to take services to the doorsteps of people in rural and remote areas. Currently, the turnover of India Post is about Rs 12,000 crore and over the next 3-4 years, the government is planning to increase it by 50-60%.

On BSNL, he said, the plan is to roll out 4G services by deploying 100,000 towers by the middle of next year. In the 100 days of the new government, BSNL has deployed about 25,000-28,000 towers for 4G services, he said.

“With the tariff hikes, a lot of porting happened from other players to BSNL. So, my key challenge is going to be that after the network is rolled out, customer acquisition that we have done over the last couple of months stays with BSNL,” Scindia said.