Centre mulls making postal department commercial entity

The new law would not only make private operators more accountable but also provide a level-playing field for the postal department which is facing stiff competition even as it bears the burden of fulfilling various social obligations. Though the postal department has diversified into many different profit making ventures, it continues to spent a lot of money in setting up post offices in farflung areas where the returns are not promising.

The government has already appointed the KPMG Group to conduct a financial evaluation of the sector. The job of the agency is to identify the postal department’s universal service obligation and the cost of fulfilling it, which, today, is included as a part of the budgetary deficit or loss. ‘‘The KPMG report will only deal with this aspect of the revamp of the postal department,’’ senior sources clarified.

While the move would help ease the burden on the postal department it would also be in the interest of the consumers. ‘‘As of now any one can set up a couriers service with absolutely not accountability,’’ says a government official. The new laws would make private courier companies accountable for mishandling of parcels and goods and outline guidelines which the private operators would need to adhere to.