Mirroring signs of revival, the Department of Posts has registered the highest decline in deficit in more than 10
years at Rs 550.73 crore in 2011-12 on the back of increase in revenues, mainly
from financial services.
Total revenues of the department in 2011-12 rose by 13.62 per cent to Rs
7,910.51 crore while expenditure stood at Rs 13,705.4 crore, leaving a deficit
of Rs 5,794.89 crore.
In the previous fiscal, DOP had revenues of Rs
6,962.33 crore and expenditure of Rs 13,307.95 crore, reflecting a gap of Rs
6,345.62 crore.DoP's deficit had jumped over 80 per cent to 6,641.30 crore in 2009-10 from
3,593.09 crore in 2008-09 due to implementation of the Sixth Pay Commission's
recommendations."In the last one year we have developed an integrated strategy to make India
Post, commercially and socially relevant. The financial performance of the last
year indicates that we have succeeded to an extent. But a lot more need to be
done," Minister for Communications and IT Kapil Sibal
told PTI.
According to the Financial Performance report prepared by Department of Posts
for 2011-2012, revenues from financial services grew by 20.8 per cent at Rs
4,304.07 crore in 2011-12 compared to Rs 3,562.77 crore in FY'11.Revenue from postal operations grew by 6.08 per cent to Rs 3,606.44 crore in
2011-12 from Rs 3,399.56 crore it registered in FY'11.Sibal said that he is expecting revenue of DoP to grow by 20 per cent in the
current financial year."This financial year we are targeting revenue increase of plus 20 per cent. I
am happy that India Post is moving in the right direction. Now we need to
increase our speed," he said. DoP has appointed Boston Consulting Group to prepare an appropriate business
structure for the emerging and premium services of India Post.
The postal department has floated expression of interest to appoint a
consultant for preparing detailed project report of its ambitious
Post Bank projects and this report is expected to be finalised by end of this
calendar year."The Post Bank project will rejuvenate financial services offered through
post offices," Sibal said.DoP has already announced to set-up 1000 ATMs across country as part of its
financial services.
Sibal has also asked DoP introduce premium logistics services in select 80 to
90 cities within six months to tap the expanding e-commerce market in the
country and enhance its revenue by 15 per cent.In its ongoing transformation process, the department entered into a
partnership with state-run telecom company BSNL to provide money order service
using mobile phones for which it expects to start pilot project by September.
