Local Speed Post rates cut 40% to Rs 12

NEW DELHI: Taking on the private courier industry, the government on Monday slashed local Speed Post tariff for up to 50 gm by 40% to Rs 12 from Rs 20. The revised rates includes both service tax and education cess. At present, the department of post (DoP) is estimated to have a market share of under 30% in this segment. The move is set to impact the private courier industry as intra-city delivery accounts for a significant bulk of their business.

Following the revision, Speed Post will be quite competitive in the express industry, general manager in the department of posts, John Samuel, told mediapersons here. However, there has been increase some in the weight slabs above 50 grams, he said. This revision also implies that speed post articles booked in and destined for Delhi, Ghaziabad, Noida, Gurgaon and Faridabad will be treated as ‘local’, he added.

The government had recently informed Parliament that it was expecting a revenue of over Rs 500 crore in the current fiscal from its Speed Post service when compared to Rs 449 crore during 2006-07. In a written reply, minister for state for IT and Communications Shakeel Ahmad also added that a plan outlay of Rs 12,340 crore has been proposed for the DoP in the 11th five year Plan (2007-12). The funding outlay for the 11th five-year plan is currently under the consideration by the Planning Commission and is expected to be finalised within the next three months.

“Speed Post services are available at over 1,200 towns across the country. Local Speed Post services will be provided at all these centres and under the service, Speed Post articles meant for the same town will be delivered either on the same day or on the next working day,” the DoP said in a statement.