Friday, July 6, 2012

STEEPEST FALL IN POSTAL DEPT’S DEFICIT IN 10 YEARS

                Mirroring signs of revival, the Department of Posts (DoP) has registered the highest decline in deficit in more than 10 years at Rs 550.73 crore in 2011-12 on the back of increase in revenues, mainly from financial services.
            Total revenues of the department in 2011-12 rose by 13.62 per cent to Rs 7,910.51 crore while expenditure stood at Rs 13,705.4 crore, leaving a deficit of Rs 5,794.89 crore.
            In the previous fiscal, DoP had revenues of Rs  6,962.33 crore and expenditure of Rs 13,307.95 crore, reflecting a gap of Rs 6,345.62 crore.
            DoP's deficit had jumped over 80 per cent to 6,641.30 crore in 2009-10 from 3,593.09 crore in 2008-09 due to implementation of the Sixth Pay Commission's recommendations.
            “In the last one year we have developed an integrated strategy to make India Post, commercially and socially relevant. The financial performance of the last year indicates that we have succeeded to an extent. But a lot more need to be done,” Minister for Communications and IT Kapil Sibal told the news agency.
According to the Financial Performance report prepared by Department of Posts for 2011-2012, revenues from financial services grew by 20.8 per cent at Rs 4,304.07 crore in 2011-12 compared to Rs 3,562.77 crore in FY'11.
            Revenue from postal operations grew by 6.08 per cent to Rs 3,606.44 crore in 2011-12 from Rs 3,399.56 crore it registered in FY'11.
            Sibal said that he is expecting revenue of DoP to grow by 20 per cent in the current financial year.
            “This financial year we are targeting revenue increase of plus 20 per cent. I am happy that India Post is moving in the right direction. Now we need to increase our speed,” he said.
            DoP has appointed Boston Consulting Group to prepare an appropriate business structure for the emerging and premium services of India Post.
            The postal department has floated expression of interest to appoint a consultant for preparing detailed project report (DPR) of its ambitious Post Bank projects and this report is expected to be finalised by end of this calendar year.
            “The Post Bank project will rejuvenate financial services offered through post offices,” Sibal said.DoP has already announced to set-up 1000 ATMs across country as part of its financial services.
            Sibal has also asked DoP introduce premium logistics services in select 80 to 90 cities within six months to tap the expanding e-commerce market in the country and enhance its revenue by 15 per cent.
Press Trust of India / New Delhi Jul 05, 2012,  

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