DoP slashes Speed Post rate by 40%, sets Rs 550cr revenue in '08

New Delhi, June 11 (UNI) The Department of Posts (DoP) today slashed local speed post rates by 40 per cent at Rs 12 from Rs 20 for 'up to 50 grams' and targeted Rs 550 crore revenue by the end of this fiscal.

The rates for outside the local area irrespective of distance for up to 50 grams parcels would be Rs 25 only.

In August last year, DoP launched 'One India, One Rate' scheme under with a new weight slab of 'up to 50 grams' was introduced at Rs 25 for all Speed Post centres.

''Our objective is to compete with other market players and to maintain a stronghold in the local segment. We aim to garner Rs 550 crore revenue from the Speed Post by the fiscal-end, against Rs 450 crore last fiscal,'' Department of Posts General Manager (Business Development and Marketing Directorate) John Samuel told mediapersons here.

Launched in 1986, the Speed Post with a market share of 27 per cent had a monthly traffic exceeding 1.4 crores in March this year, registering a 40-50 per cent growth.

Effective from today, the revised rate includes service tax and education cess, Mr Samuel added.

At present, Speed Post services are available at more than 1,200 towns across the country.

''We will increase the Speed Post centres by 300 to 1,500 by the end of this year,'' he said.

The DoP will also introduce home collection service very soon.

''After setting up call centres in eight cities, we will launch this home collection service,'' Mr Samuel said.

The cities are Delhi, Kolkata, Mumbai, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad.

He said the cost per unit will further come down once the department gets its own aircraft which is expected by this year-end.

Speed Post articles booked in and destined for the National Capital Region (NCR) towns -- Delhi, Ghaziabad, Noida, Gurgaon and Faridabad -- will be treated as 'local'.

The articles meant for the same town will be deliverd either on the same day or on the next working day.

The department has also increased the rates of some of the weight slabs above 50 grams.

UNI