Assocham against reducing FDI ceiling in courier cos
Industry body Assocham has opposed the government's move to restrict foreign shareholding in courier companies to 49 per cent from the current 74 per cent.
By PTI |
NEW DELHI: Industry body Assocham has opposed the government's move to restrict foreign shareholding in courier companies to 49 per cent from the current 74 per cent.
The governments proposed move to reduce the FDI limit to 49 per cent will have serious implications on the private courier industry, Assocham President Venugopal N Dhoot said in a statement.
The government is currently considering amendment in the Indian Post Offices Act and a draft bill has been circulated between various stake holders seeking their view.
The chamber has said the amendment in the Indian Post Offices Act which would make annual registration mandatory for the private courier companies, leading to inspector raj.
In a note to the Department of Posts, Assocham has also resisted DoP's instruction to the private courier companies to charge two and half times more than what the government charges for speed posts. The instruction was given for envelop weighing up to 150 grams.
Every policy should be competitively neutral amongst all players, whether private enterprises or government departments, the chamber said.
The decision could affect the courier industry which supports trade and commerce, contributing in the economic growth of the country besides providing employment to many, it added.
With the proposed move the consumer will be deprived of the services and low cost, Assocham said.
The chamber has planned to take up these issues with the Competition Commission of India, saying there should be a level playing field and the measures government is planning might lead to a monopoly in the courier industry.
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