DoP asked
FinMin a non-plan fund of Rs 1,000 crore in the upcoming budget to
modernise post offices and replace old hardware
Buoyed by
the surge in e-commerce, India Post will transform its functioning by inducting
computers, renovating post offices and acquiring vehicles for transporting
parcels.
The department
had asked the finance ministry for a non-plan fund of Rs 1,000 crore in the
upcoming budget, an India Post official told Business Standard. "Seeing
the huge growth in e-commerce orders, we plan to modernise post offices and
replace old hardware," the official added.
E-commerce
players like Amazon, Snapdeal, Flipkart and Naaptol have tie-ups with India
Post for delivery of parcels, mainly to small towns and cities.
"About
35 road routes for parcel transmission will be operational in the next one
year. Shifting to a road network will ensure secure and speedy delivery,"
the official said.
India
Post is planning to buy 250 vehicles by the end of this year and the existing
fleet of 1,300 vehicles will also be deployed for this purpose.
India
Post's parcel revenue, which registered a 2 per cent decline in 2013-14, grew
37 per cent growth in 2014-15 and 107 per cent in the first quarter of 2015-16,
year on year.
Cash on
delivery from e-commerce is expected to touch Rs 1,000 crore by March 2016 from
Rs 500 crore a year ago. India Post is aiming for a revenue of Rs 200 crore by
2015-16 from e-commerce. The five-year target is Rs 5,000 crore.
The
department is working on transforming its infrastructure from document handling
to merchandise handling, according to a presentation by the postal department
to Prime Minister Narendra Modi.
The
delivery channel of India Post is used primarily for small towns and cities. It
has a network of 150,000 post offices and an employee base of 550,000.
India
Post is, in fact, exploring a separate entity for e-commerce. It plans to
invest Rs 300 crore in upgrading and setting up automatic parcel centres apart
from the two it has in Delhi and Kolkata. It is also setting up integrated
parcel centres at Mumbai, Chennai, Hyderabad and Bengaluru.
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