PMO stamps out DoP move to regulate courier charges
The PMO has raised objections to DoP's proposal to regulate and set tariffs for courier services by which such firms would need to charge at least five times higher tariff for normal mails when compared to posts.
By Niranjan Bharati, TNN |
NEW DELHI: Inflation, a dreaded word for the economy today, may turn out to be a boon for the courier industry. The PMO has raised objections to Department of Post���s (DoP) proposal to regulate and set tariffs for courier services by which such firms would need to charge at least five times higher tariff for normal mails when compared to posts.
This, the PMO has said, would be inflationary in nature and so should be avoided. The matter is set to be taken up by the Cabinet soon.
���Courier companies are providing services for over two decades and constitute an important part of common people���s needs. Considering the fact that price rise is an important issue for us, it is unlikely that there would be any price regulation in this sector,��� a senior government official said. DoP officials declined to comment on the issue, saying the matter is under advanced stage of consideration by the Cabinet.
The PMO has also raised questions on the proposed Mail Regulatory and Development authority (MRDA), saying it may lead to ���inspector raj��� and erode competitiveness of the industry. The DoP had proposed a strong regulatory mechanism for courier services under which companies needed to get themselves registered with the department and run their services in accordance with the rules set for them.
It had proposed that courier services should charge at least five times higher tariff for normal mails of up to 150 gms and 2.5 times higher for urgent mails, compared to the post office charges. The PMO has observed that increased cost of courier delivery would result in costlier service delivery system, which in turn would make it even more difficult to manage rising prices.
DoP had proposed that courier companies desirous of offering services in the country should pay a one-time registration fee of Rs 10 lakh for international services and Rs 25,000 for domestic only services. Also, it had proposed that in addition to the registration cost, the companies should pay Rs 5 lakh and Rs 10,000 annually for international and domestic services, respectively.
A bill to amend the 1898 Act was initially introduced in the Parliament in 2002. The bill was to reinforce DoP���s monopoly for handling letters weighing less than 300 gm, allow private couriers to convey articles beyond 300 gm, introduce a registration fee along with a 10% universal service obligation charge on private couriers and set up the mail regulatory and development authority.
The DoP had incorporated some changes in the proposed amendment and sent the bill for Cabinet���s consideration earlier this year.
This, the PMO has said, would be inflationary in nature and so should be avoided. The matter is set to be taken up by the Cabinet soon.
���Courier companies are providing services for over two decades and constitute an important part of common people���s needs. Considering the fact that price rise is an important issue for us, it is unlikely that there would be any price regulation in this sector,��� a senior government official said. DoP officials declined to comment on the issue, saying the matter is under advanced stage of consideration by the Cabinet.
The PMO has also raised questions on the proposed Mail Regulatory and Development authority (MRDA), saying it may lead to ���inspector raj��� and erode competitiveness of the industry. The DoP had proposed a strong regulatory mechanism for courier services under which companies needed to get themselves registered with the department and run their services in accordance with the rules set for them.
It had proposed that courier services should charge at least five times higher tariff for normal mails of up to 150 gms and 2.5 times higher for urgent mails, compared to the post office charges. The PMO has observed that increased cost of courier delivery would result in costlier service delivery system, which in turn would make it even more difficult to manage rising prices.
DoP had proposed that courier companies desirous of offering services in the country should pay a one-time registration fee of Rs 10 lakh for international services and Rs 25,000 for domestic only services. Also, it had proposed that in addition to the registration cost, the companies should pay Rs 5 lakh and Rs 10,000 annually for international and domestic services, respectively.
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A bill to amend the 1898 Act was initially introduced in the Parliament in 2002. The bill was to reinforce DoP���s monopoly for handling letters weighing less than 300 gm, allow private couriers to convey articles beyond 300 gm, introduce a registration fee along with a 10% universal service obligation charge on private couriers and set up the mail regulatory and development authority.
The DoP had incorporated some changes in the proposed amendment and sent the bill for Cabinet���s consideration earlier this year.
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