'One India, One Rate' for Speed Post from Aug 21

By Staff
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Google Oneindia News

New Delhi, Aug 20: To keep an edge on the private courier agencies, India Post will tomorrow kick off a new Speed Post tariff under 'One India, One Rate' scheme, official sources said here today.

It is for the first time that Speed Post rates are reduced, with an objective to make Speed Post brand a relevant and vibrant one, sources in the Department of Posts told sources.

There would be a new weight slab of upto 50 grams under this scheme. ''Speed Post tariff under this scheme will be Rs 25 for the first weight slab of 'upto 50 grams', irrespective of the distance. However, in respect of 'local', the current Speed Post rate structure will continue,'' sources said.

The new tariff of Rs 25 for the weight slab of upto 50 grams (other than local articles) will be inclusive of service tax and educational cess, irrespective of the distance involved. ''As such, the rate is all-inclusive and the customer will pay just Rs 25,'' they said.

This is one of the many new initiatives, the Department has planned as a part of Speed Post's 20th anniversary celebrations.

Speed Post was started in August 1986 with a view to provide time-bound and express delivery of letters and parcels to the customers. Its rates were restructured on September 10, 2001, and after that there had been no change in the rates.

Now, with a view to enable the customers to send their letters through Speed Post, the department has introduced 'One India One Rate' scheme.

In the past 20 years it continues to be the market leader in the express industry. ''During 2005-06, Speed Post revenue crossed Rs 408 crore and in the current year, we have targeted a revenue of Rs 500 crore,'' sources said.

One of the oldest department of Posts and Telegraphs, India Post is now focussing on diversification of its services, as it has lost a big pie of core businesses like handing letters and parcels to private courier agencies.

The department is also welcoming public-private partnerships (PPP) to enhance the quality of its services. Collaboration with the science company DuPont for manufacturing Rakhi emvelopes last months was a citation of its PPP initiatives.

Such diversified business interests have infused a new life to the crumbling India Post and the losses of department have come down significantly to Rs 1,215 crore in FY06, from Rs 1,411.5 crore in FY02.

UNI

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