PROTEST BY NFPE ON NATIONAL POSTAL POLICY - 2012
The Points stressed in the meeting held on 01.10.2012 with the Secretary and
Postal Board Members on the revised postal board policy 2012 by the Secretary
General and General Secretaries of NFPE is recorded in a form of letter addressed
to Postal Board. The letter is reproduced here under for the consumption of all viewers.
Postal Board Members on the revised postal board policy 2012 by the Secretary
General and General Secretaries of NFPE is recorded in a form of letter addressed
to Postal Board. The letter is reproduced here under for the consumption of all viewers.
NATIONAL FEDERATION OF POSTAL EMPLOYEES
(Central Heads Quarters)
1st Floor, North Avenue Post office, New Delhi – 110001
Ref: NFPE/NPP 2012/GENL/2012 Dated 01.10.2012
To
Mrs. Suneetha Trivedi
Member (Planning)
Postal Services Board
Dak Bhawan, New Delhi – 110001
Madam,
Sub: - Discussion on National Postal Policy 2012.
Ref: - (i) Your DO No. 27-69/2011 dated 18.09.2012
(ii) Meeting held at Dak Bhawan on 01.10.2012
Kindly refer to the proceedings of the meeting held at Dak Bhawan nder the Chairpersonship
of Secretary, Department of Posts on 01.10.2012, on the above subject. The viewpoints expressed by the NFPE and its affiliated unions on the specific issues of unbundling of functions and introduction of an independent regulator for Indian Postal market is summarized below:
of Secretary, Department of Posts on 01.10.2012, on the above subject. The viewpoints expressed by the NFPE and its affiliated unions on the specific issues of unbundling of functions and introduction of an independent regulator for Indian Postal market is summarized below:
(a) Theory of level playing field and its negative impact in the Indian situation
In the National Postal Policy 2012 it is stated that it is essential to allow free interplay of
market forces and consequent stabilization of the Postal market. This means opening up of
entry in the Postal market for national/international courier companies by granting
licence for which amendment to the Indian Post office Act 1898 is a must.
market forces and consequent stabilization of the Postal market. This means opening up of
entry in the Postal market for national/international courier companies by granting
licence for which amendment to the Indian Post office Act 1898 is a must.
In India more than 70% of the population lives in rural villages and the Department of Posts is
the sole service provider in the rural areas, through it’s a vast network of more than 1,55000
post offices. It is an admitted fact that, even now couriers are not providing postal services
in the rural areas. On getting licence they will restrict their area of operation to the metro
cities/cities and shall capture a major share of Postal sector revenue. About 70% of the
revenue of India Post is from metro cities/cities. The remaining rural villages where
70% of the population resides is contributing less than 30% of the revenue earned by India Post.
the sole service provider in the rural areas, through it’s a vast network of more than 1,55000
post offices. It is an admitted fact that, even now couriers are not providing postal services
in the rural areas. On getting licence they will restrict their area of operation to the metro
cities/cities and shall capture a major share of Postal sector revenue. About 70% of the
revenue of India Post is from metro cities/cities. The remaining rural villages where
70% of the population resides is contributing less than 30% of the revenue earned by India Post.
If competition is allowed, it will never be a fair competition in a level playing field. Aggressive
competition will take place in the profit making city areas and vast majority of the loss making
rural areas will be left to the India Post. This will result in further increasing the loss
incurred by the Postal Department and will lead to the natural death of the India Post
within a short span of time as the slogan is – “survival of the fittest.”
competition will take place in the profit making city areas and vast majority of the loss making
rural areas will be left to the India Post. This will result in further increasing the loss
incurred by the Postal Department and will lead to the natural death of the India Post
within a short span of time as the slogan is – “survival of the fittest.”
The experience in the telecom sector clearly manifested that the private telecom operators
never cared to provide landline connections in the rural areas, inspite of inclusion of a separate
clause to this effect in the licences granted to them, instead they opted to pay the meagre
amount of fine imposed on them for violation of the compulsory clause of provision
of rural landline connections. The Government and the regulator has always taken a
lenient view towards private operators. In the Postal also the same thing will happen.
never cared to provide landline connections in the rural areas, inspite of inclusion of a separate
clause to this effect in the licences granted to them, instead they opted to pay the meagre
amount of fine imposed on them for violation of the compulsory clause of provision
of rural landline connections. The Government and the regulator has always taken a
lenient view towards private operators. In the Postal also the same thing will happen.
(b) Amendment to the Indian Post office Act 1898
We do agree that many of the clauses of the Indian Post office Act 1898 has become
obsolete and many changes are to be incorporated therein, especially in the context of induction
of Information and Communication Technology (ICT) in the Postal Services. But the amendment
envisaged in the National Postal Policy 2012 is quite unwarranted. By amending the Act, the
Government want to end the monopoly of the Department of Posts in collection, processing,
conveyance and delivery of letter mail articles. This is mainly to facilitate entry of the
private courier companies to compete in the letter mail sector.
obsolete and many changes are to be incorporated therein, especially in the context of induction
of Information and Communication Technology (ICT) in the Postal Services. But the amendment
envisaged in the National Postal Policy 2012 is quite unwarranted. By amending the Act, the
Government want to end the monopoly of the Department of Posts in collection, processing,
conveyance and delivery of letter mail articles. This is mainly to facilitate entry of the
private courier companies to compete in the letter mail sector.
Earlier also Government has brought a bill called “Indian Post office Act Amendment bill” in
the Parliament for this purpose. The bill was referred to the Standing committee of Ministry of
Communications and IT. The Committee after hearing all the stake holders including the
courier companies had given its report in which it was clearly recommended that the exclusive
privilege of collection, processing, conveyance and delivery of letter mail articles should
remain with the Postal itself. This being the position the present move to again bring an amendment
is against interest of the people at large and the customers in particular. It is pertinent to mention
that in many foreign countries, the exclusive privileges of letter mail is being preserved with
he Government function and the existing right shall not be removed at any cost.
the Parliament for this purpose. The bill was referred to the Standing committee of Ministry of
Communications and IT. The Committee after hearing all the stake holders including the
courier companies had given its report in which it was clearly recommended that the exclusive
privilege of collection, processing, conveyance and delivery of letter mail articles should
remain with the Postal itself. This being the position the present move to again bring an amendment
is against interest of the people at large and the customers in particular. It is pertinent to mention
that in many foreign countries, the exclusive privileges of letter mail is being preserved with
he Government function and the existing right shall not be removed at any cost.
(c) Road map to privatisation
Government of India wants to open or liberalise the Indian Postal Sector for providing unhindered entry of the private sector. In the long run, the Government may withdraw from its responsibility to provide postal services to the public through Govt. owned Department of Posts. The ultimate aim and hidden agenda of the National Postal Policy 2012 is to give maximum patronage to the private sector and the “public-private partnership”, “unbundling of functions” etc are mainly intended for achieving this goal.
In the telecom, the government refused to grant permission to the Government owned BSNL for
providing the value added cellular mobile services in India. Licences were granted to all other
private cellular mobile companies and they charged exhorbitant rates for incoming and outgoing
calls. Only after six years, that too after prolonged struggle by the BSNL employees and due to
mounting public opinion, the Government reluctantly granted licence to BSNL also. If this
can happen in Telecom, one can very well imagine what will be attitude of the Government
and the fate of Department of Posts.
providing the value added cellular mobile services in India. Licences were granted to all other
private cellular mobile companies and they charged exhorbitant rates for incoming and outgoing
calls. Only after six years, that too after prolonged struggle by the BSNL employees and due to
mounting public opinion, the Government reluctantly granted licence to BSNL also. If this
can happen in Telecom, one can very well imagine what will be attitude of the Government
and the fate of Department of Posts.
(d) We oppose the neo-liberal reforms
NFPE as an organisation of the Postal employees has been fighting against the neo-liberal
globalization policies of the Government of India from 1991 onwards. When many countries where
this reforms are implemented are reverting back, we are at a loss to understand why Government
of India is going ahead with the reforms in the Indian Postal Sector. In fact, in the preamble of the
draft National Postal Policy itself it is admitted that – “though the principle of separation of regulator
and operator is widely discussed, it is yet to find universal acceptance”
globalization policies of the Government of India from 1991 onwards. When many countries where
this reforms are implemented are reverting back, we are at a loss to understand why Government
of India is going ahead with the reforms in the Indian Postal Sector. In fact, in the preamble of the
draft National Postal Policy itself it is admitted that – “though the principle of separation of regulator
and operator is widely discussed, it is yet to find universal acceptance”
In the above circumstances going ahead with the institutional reforms such as unbundling of
functions i.e.; operation, regulation and policy making in the Postal Sector will be suicidal. We
strongly oppose unbundling and setting up of separate regulator.
functions i.e.; operation, regulation and policy making in the Postal Sector will be suicidal. We
strongly oppose unbundling and setting up of separate regulator.
(e) Department of Posts can itself regulate the Postal market in India
Instead of creating a separate regulator, the Department of Post itself can regulate the
Postal market by framing necessary rules and by increasing the power of the Postal Board and
at the same time keeping its monopoly over the letter mail.
Postal market by framing necessary rules and by increasing the power of the Postal Board and
at the same time keeping its monopoly over the letter mail.
In view of the above NFPE demands the Government of India and the Postal Administration
to desist from any move to unbundle the functions and also from the move to appoint
separate regular for Indian Postal market.
to desist from any move to unbundle the functions and also from the move to appoint
separate regular for Indian Postal market.
Yours faithfully,
(M. Krishnan)
Secretary General, NFPE
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