NEW DELHI: The
Department of Posts (DoP) may set up a separate entity for handling
e-commerce services by next year to cash in on the burgeoning demand for
delivery and logistics.
According to sources,
during a recent meeting chaired by Prime Minister Narendra Modi, DoP
said it aims to conduct a financial feasibility study for setting up a
separate entity for e-commerce by October this year and start the
operations by next year.Sources said DoP may
appoint an on-board consultant for development and operationalisation of
business and marketing strategy for commerce market by July this year.
Communications and IT
Minister Ravi Shankar Prasad had earlier said India Post with the
world's largest postal network is best suited to offer delivery services
to e-commerce firms.India Post has over 1.55
lakh post offices of which around 1.40 lakh are in the rural areas. On
an average, a post office serves an area of 21.21 sq. km and a
population of 7,175 people.Sources said DoP would
strengthen e-commerce vertical in terms of resources and infrastructure
by April and set up parcel processing hubs, dedicated transmission and
mechanised delivery system by July this year.
The Department already
has a tie-up with domestic e-commerce players such as Flipkart,
Snapdeal, Amazon and Shopclues among others and for international
e-commerce, the Department has entered into agreements with e-Bay and
Japan Post.Modi had set up the Task
Force in 2014 to leverage the postal network in India and to enhance
the role of India Post in financial inclusion, among other services like
delivery of goods for eCommerce firms.
In December last year,
the Task Force had submitted its report to Prasad. It noted that with
India Posts overseeing Rs 6 lakh crore in deposits, it is second only to
the country's largest bank SBI.The report suggested
that the government should set up a holding company under the DoP for
immediate roll out of banking, insurance and e-commerce services.The holding company
should have five different verticals, and three of them -- banking,
insurance and e-commerce -- can start working immediately.
