Lok Sabha Question No. 580 (UNSTARRED), answered on 2022-07-20
Subject: Income Generated through Postal Services
Ministry: COMMUNICATIONS
Asked by: C.N. Annadurai, Dhanush M Kumar, Gajanan Chandrakant Kirtikar, Gautham Sigamani Pon

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF POSTS

## LOK SABHA UNSTARRED QUESTION NO. 580 TO BE ANSWERED ON 20 TH  JULY, 2022

## INCOME GENERATED THROUGH POSTAL SERVICES

580. SHRI C.N. ANNADURAI: SHRI DHANUSH M. KUMAR: SHRI GAJANAN KIRTIKAR: DR. PON GAUTHAM SIGAMANI:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) the quantum of income generated by the Government from various postal services during each of the last three years and the current year, postal servicewise;
- (b) whether India Post is increasingly earning revenues from non-traditional sectors like ecommerce and Payments Bank and if so, the details thereof;
- (c) the revenues earned by the Department of Posts in terms of percentage from various value added services/ non-traditional sectors during the above period;
- (d) whether the revenue generation of postal services has been declining every year and the targets for each coming year are brought down by the Government
- (e) if so, the details thereof along with the corrective steps taken in this regard;
- (f) whether there has been an increase in the revenue deficit of India Post over the past few years,
- (g) if so, the details thereof and the corrective steps taken in this regard?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS (SHRI DEVUSINH CHAUHAN)

- (a) The income generated by the Government from various postal services during each of the last three years and the current year is given in Annexure.
- (b) Yes Sir, India Post is increasingly earning revenues from non-traditional sectors like ecommerce and Payments Bank . Parcel business of the Department is consistently rising and in the last FY, Rs 500 crore was earned through parcel business, which are majorly e-commerce items.  As regards Payments Bank, the revenues of the Bank increased from Rs 213 crore in 2020-21 to Rs. 461 crore in 2021-22.

(c) The revenue earned by the Department of Posts from various value added services /nontraditional sectors during the above period are as under

| Services                                                                        | 2019-20   | 2020-21   | 2021-22   |
|---------------------------------------------------------------------------------|-----------|-----------|-----------|
| Value added services/ Non- traditional revenue as a percentage of total revenue | 16.47%    | 15.08%    | 16.22%    |

(d) Revenue  of  Department  of  Posts  declined  only  in  the  year  2020-21  owing  to  Covid lockdown. Since then the revenues are consistently on increase.

(e) In order to generate additional revenue, Department regularly reviews its offerings and takes appropriate action including introduction of new products and services to offer value additions to make  them  more  customer  and  business  centric.  The  Department  in  tie-  up  with  Government organizations is providing various citizen centric services viz. Aadhaar Enrolment and updation facilities,  Post  Office  Passport  Seva  Kendra,  Passenger  Reservation  facilities,  Digital  Life Certificates etc.

- (f) Yes Sir,
- (g) The details are furnished below:

(In crore Rupees )

| Year            |   2017-18 |   2018-19 |   2019-20 |   2020-21 |
|-----------------|-----------|-----------|-----------|-----------|
| Revenue Deficit |     12416 |     13977 |     14813 |     17695 |

Department is taking various steps, as described at (e) above to increase the revenue of the Department. Additionally, Department is also controlling its expenditure and leveraging technology to decrease the revenue deficit.

## ANNEXURE

## ANNEXURE REFFERED IN REPLY TO PART (A) OF THE LOK SABHA UNSTARRED QUESTION NO. 580 FOR ANSWER ON 20.07.2022 REGARDING INCOME GENERATED THROUGH POSTAL SERVICES

## (IN CRORES RUPEES)

|   S.NO | Services                                                                                                                                                |   2019-2020 |   2020-2021 |   2021-22 | 2022-23 (UPTO MAY- 2022)   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|-------------|-----------|----------------------------|
|      1 | Speed Post, Parcel , Letter mails etc.                                                                                                                  |        4056 |        2900 |      3650 | 457                        |
|      2 | Money Orders etc.                                                                                                                                       |         224 |         194 |       118 | 12                         |
|      3 | Savings Bank and Savings Certificates                                                                                                                   |        8660 |        7056 |      6114 | **                         |
|      4 | Commission/ charges received for providing services of Post Office Passport Seva Kendra, Aadhar Kendras, Railway reservation, Common Service Center etc |         618 |         483 |       971 | 72                         |

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