Lok Sabha Question No. 1768 (UNSTARRED), answered on 2016-07-27
Subject: Share of India Post
Ministry: COMMUNICATIONS
Asked by: ARVIND GANPAT SAWANT, VISHNU DAYAL RAM, PASHUPATI NATH SINGH

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF POSTS

## LOK SABHA

## UNSTARRED QUESTION NO.1768 TO BE ANSWERED ON 27 TH  JULY, 2016

## SHARE OF INDIA POST

†1768. SHRI ARVIND SAWANT:

SHRI VISHNU DAYAL RAM:

SHRI PASHUPATI NATH SINGH:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  market  share  of  Indian  Postal  Service  is  declining  swiftly  in comparison to Indian courier companies;
- (b) if so, the details thereof and the reasons therefor;
- (c) the steps taken by the Government to compete with the courier companies and to upgrade and modernise its delivery system;
- (d) whether the tariff of courier companies is comparatively higher than the India post; and
- (e) if  so,  the  details  thereof  and  details  of mandate with  Government to regulate the tariff of courier companies in favour of the customers?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a ) & (b) No, Madam. There is no decline in the market share of the Indian Postal Service in comparison to the courier companies in the country. In contrast, the market share of Speed Post in the overall courier market has increased.  As per study done by  M/s  Indian  Market  Research  Bureau  (IMRB)  International  in  the  year,  2013,  the total  courier  industry  in  India  is  valued  at  Rs.  5,  246  crore  in  2012-13.    The  IMRB study  brings  out  that  the  share  of  Speed  Post  in  the  overall  courier  market  has increased  from  15.1%  -  18.3%  in  the  year  2010-11  to  16.7%  -  19.8%  in  the  year 2011-2012 and 17.4% - 20.2% in the year 2012-13. In the subsequent years also the traffic of Speed Post registered increase from 36.99 crore in 2013-14 to 39.87 crore in 2014-15  and  41.43  crore  in  2015-16.  Likewise,  the  revenue  of  Speed  Post  also increased  from  Rs.1372.21  crore  in  2013-14  toRs.  1495.21  crore  in  2014-15  and Rs.1600.45 crore in 2015-16.
- (c) Various steps have been taken by the Department to compete with the courier companies  to  upgrade  and  modernize  the  delivery  system.  Project  Arrow  was conceived of as a major Project for Quality Improvement, besides Modernization of the Post Offices. Project Arrow has improved the quality of 'Core Operations' and also provided  standardized  'Look  &  Feel'  to  the  Post  Offices  across  the  country.  'Mail Network Optimization Project' has improved the mail operations including the delivery system. The Comptroller and Auditor General of India vide Report No. 20 of 2015 had conducted a test check to compare the performance/quality of Speed Post service of DoP with private courier agencies. As per that report, 98 %, 99.05% and 100% letters were delivered by Speed Post of DoP in local areas, major cities and tehsil level as compared to 93.55%, 92.17% and 83.50% by the private couriers.
- (d) & (e) Department of Posts does not regulate the courier companies and has no mandate to regulate the tariff thereof.

************