Industry opposes Govt's move to restrict shares in courier Cos

New Delhi, May 1 (UNI) An industry body today opposed the Government's move to restrict foreign shareholdings in courier companies to 49 per cent and amendment to the Indian Post Offices Act, 1898, making their annual registration renewal mandatory.

Industry chamber Assocham submitted a note to the Department of Posts resisting it's proposal to charge two and a half times more on postal bags weighing upto 150 gm from the courier companies as compared to speed post tariffs.

''The Government's proposed move will have serious implications on the private courier industry,'' Assocham President Venugopal N Dhoot noted in the letter.

The intense competition amongst the various courier service providers has resulted in improvement in availability of service at an affordable price to the consumers.

Now, with this proposed move, the consumer will be deprived of the services and low cost, Mr Dhoot said.

He said, the principle of competition advocates a level playing field for state-owned as well as private companies in the same business and there should be competitive neutrality treatment for all, adding that any discrimination or preferential treatment on the basis of ownership or otherwise goes against the spirit of fair competition.

He further advised every policy should be competitively neutral amongst all players, whether these be private enterprises or government departments.

The move is clearly against competition and will promote inefficiency in the courier industry, he cautioned saying, if consumers have urgent or time-sensitive documents to send, they would be forced to use the Indian Post Office, which has a reputation for inefficiency and delayed deliveries.

He discouraged the move and said it will bring down employment in the private courier sector as major chunk of business comes from less than 150 gm segment.

Besides, courier industry supports trade and commerce, directly helping in economic growth of the country.

Assocham also proposed to take up these issues with the Competition Commission of India as the measures taken by the Government might lead to a monopoly in the courier industry.

UNI