Saturday, October 08, 2016

Department of Posts may hike price of products to prune revenue deficit

Department of Posts may hike price of products to prune revenue deficit

According to the official, the department has proposed increasing the prices of the 25 paise and 50 paise postcards to 2 rupees, and the price of the Rs 6- printed postcard to Rs 9 per printed postcard.
Published On: October 8, 2016 3:18 Am
The department also proposed to increase the cost of India Post’s parcel service to Rs 30 per 500 grams, compared with the prevailing Rs 19 per 500 grams. Representational photo)

In order to prune its Rs 6,000-crore annual revenue deficit, the Department of Posts on Friday held a review meeting chaired by Minister of Communications Manoj Sinha to discuss various proposals that could result into an additional Rs 1,000 crore in earnings every year, by the means of upward revision in rates of several postal products such as stamps, post-cards, inland letters, etc.

A senior government official said that last such revision was made in 2001-02, and a December 2015 report by the postal department found out that its expenses had risen by 262 per cent since the revision despite the rates of the products remaining the same.

During the meeting, when postal department officials apprised Sinha that the rates were decided by the finance ministry, the minister directed that a committee of professionals should be formed to decide on the prices of various postal products.

According to the official, the department has proposed increasing the prices of the 25 paise and 50 paise postcards to 2 rupees, and the price of the Rs 6- printed postcard to Rs 9 per printed postcard. Similarly, the price of an inland letter of Rs 2.50 denomination has been proposed to be increased to Rs 9.

Source : The Indian Express

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