Wednesday 3 October 2012

We are opposing the proposed national postal Policy 2012 in Toto


Ref No. National Postal Policy/2012                         Date:  28th Sep 2012
To
Ms. Suneeta Trivedi,
Member (Planning),
Postal Services Board,
Dak Bhawan, New Delhi-110001.
Madam,
                Sub:      National Postal Policy – 2012.
                                  ****
The Ministry’s attempt to put the policy, first and amend the IPO Act 1898 based on it is wrong, unconstitutional, against the Parliamentary democracy and unacceptable.
The analysis of the proposed policy draft Para wise is enclosed.
Kindly go through it with an open mind and drop the proposed National Postal Policy, 2012.
,                                                              Yourssncerely
    {D.Theagarajan}


DETAILED COMMENTS ON “THE DRAFT National Postal Policy 2012”
I           What does the “Legal” Indian Postal Service Stand for :
The draft National Postal Policy 2012 has to be first read and understood in the context of what the “Legal” Postal Service of India stands for and what it does over more than 155 years of its existence. Without understanding this context, it will not be possible to fully appreciate the plus and minus points of the proposed policy in this draft.  Hence, a brief mention of what the “legal” Indian Postal Service is, what it does and its contribution to the National economy is attempted below, shorn of jargons and heavy statistics :
(i)                 Indian Postal service started in 1854 had served as the only means of communication for decades, even after telegraph and telephones emerged.  Even today, in the internet-age also, it is the only major, cost effective and easy-to-access medium of communication to all in India - poorest rural/urban folks, business community, Government or industry - as the growing volume of Business Post indicates and the continued patronage to Postcards is indicating.  In short, it is the most important effective communication system India fortunately has, meeting the universal service obligations as propounded by UN body UPU .  
(ii)               With its spread of vast network of Post offices, 1,54,000 plus – all over the Country, from the snow clad Ladhak, Arunachal Pradesh, Himachal Pradesh etc to the sea-coast states (in the North-South dimensions) and from the sandy Rajasthan to green hills of North eastern states (in the West-East dimension), it is the only institution of the Union of India which effectively represents the Nation-hood of India. In short, it is a symbol of National Integrity.
(iii)             As a Government –Institution, it employs 5.5 Lakhs plus people who run the machinery with clockwork precision, every day,  365 days, day and night with no let or closure for the common man and  economy of India.  As a civil employer, it is next only to Railways in number. More than 60% of its work force are from rural areas, poor and the middle class, with just 10th class or 10+2 class qualification but it has never come in the way of their skillful running of this communication system uninterrupted, with loyalty and dedication and at the least cost; In short, it is an organisation of people of extraordinary calibre.
(iv)             India Post is much more than a mere Postal Service.  It is managing in a way effective resource mobilization to the receipt area of our Capital budget.  It’s role in mobilizing National Savings is unparalleled in the history of banking and finance.  It is their silent effects, which has been the main stay of consistent nature for financial mobilization – both for Centre and States.  If fiscal deficit is to be kept at bay, its role cannot be underestimated.  In the last fiscal year, the small savings outstanding’s were Rs. 582833 crores which means the amount mobilized thereby helping the Governments (Central & States) in their investment needs. It’s collections (net) on an ongoing basis can be lost with only at Government’s peril.  It is a low cost fund constantly made available to Government by the Postal network and by its dedicated work force.  The further point to note is Postal Savings network has rarely witnessed any financial hot-spots, unlike the Nationalized banks with growing NPAs.   In short, India Post is a major economic instrumentation available to government of India as well as States, at the lowest cost;  
(v)               India Post owns the Nation’s second largest Life Insurance Institution, namely Postal Life Insurance and rural Postal Life Insurance.  It has consistently bet the LIC and the so called efficient private Life Insurance Companies, by charging lower premium and by giving higher bonus, every year.  Thanks to Malhotra Committee recommendations, by entering into the rural postal life insurance area, India Post is the only and real life insurer to the rural population.  It is the only Life Insurer which waives premia from rural folk when a calamity like draught or flood strikes them.  Though it is outside IRDA,. The running of this institution is more than what IRDA stipulations call for.  The fact that the annual accretions of postal and rural postal Insurance are invested in the market shows its dexterity, modernity and competence.  The fact that it is highly computerised is another fact to be noted.  In short, India Post through its Postal Life Insurance and Rural Postal Life Insurance is actually and effectively serving the People and particularly the rural poor and through its investments in the market is an economic force in the hands of the Government.
(vi)             India Post, without much of fanfare, and the so-called elite consultants and economic and management expert advise, has been in the forefront in creating Brands and products of modern relevance is a truth no one can ignore:

SPEED POST : A Brand of international recognition, created and maintained with least advertisement serving the business as well as the public at lowest price beating All the couriers, in coverage and volume;
EXPRESS PARCEL POST: A brand, which has institutionalised the safe delivery of goods and merchandise, posing effective competition to all couriers;
LOGISTICS POST: A brand, which has effectively repositioned itself, in the Cargo segment, with least cost, taking the challenges of multi-national couriers, head on
RETAIL POST : A brand which leverages the network advantages of Department of Posts, serving as a means for retailing - a whole lot of   products and services, magazines, books, tea, gold, aluvera products, prasads and you mention any;
MEDIA POST: A brand which leverages its stationery as a resource generator as well as a collector’s item;
BUSINESS POST: A brand, which has effectively replaced the mail-processing units and costs of major business houses, while simultaneously generating thousands of jobs for the poor and semi-educated men and women all over the country. 
In short, India Post has effectively modernised itself at least cost and without much hype, serving poor, business, industry and nation as a whole.
(vii)           India Post, though its network has effectively carried out money transfer function even to the remote corners of this Nation, through money order, Speed post money order, International money transfer (in alliance), Postal Order etc at even the remote corners of the country reliably, at least cost unlike the banks, who have not reached the poor and rural sector even after 43 years after the Nationalsation.
In short, India Post has generated modern products/brands , with least cost.
(viii)         In the ICT era, India Post has already recorded its preface effectively:
e-Post : A brand/Product which effectively brings the benefits of Information technology to the common man;
e-bill : A brand/Product which effectively has served the business and people through Information Technology. India Post has produced, soft wares of international quality and even is exposing some of them to other countries.
Maghdoot Software: An indigenously produced software meeting the Postal Counter needs;
V 2 Software : A banking reconciliation software produced at least cost (only three people developed it, which served for 15 years to the departmental needs).
CC Bridge Software: A banking reconciliation software for cash certificates produced at least cost [only one person developed it] which has effectively saved millions of man-hours;
Life Insurance record keeping software:  An insurance software for retrieval and safe keeping of policy documents, developed at least cost [only one person developed it].
Records Keeping software : Enabling management of old records, MIS software etc. etc.
The important point to note here is all of the software were developed, tested and implemented successfully by just ordinary clerks with no extra recommendations or incentive. A network of software development centers employing few people effectively is the department’s achievement.   The Department of Posts is a pioneer in developing the concepts of multi-purpose Counter machine, saving the people their waiting time (Again the concept developed indigenously).

  In short, India Post has been a pioneer in bringing to Indian People – Poor and rural  - the benefits of ICT at least cost and with least fanfare.
(ix)              India Post has been serving silently in many front line areas like giving identity certificate at least cost, helping poor self-help groups (Through micro-credit) etc.   
In short, India Post, is the best vehicle available for Government of India in reaching the needs of poor and needy at least cost.
(x)                 India Post had been silently helping the defense needs of the Nation. Army Postal Service is fully manned by trained postal manpower and officers meeting the needs of the defense forces. The fact that most of the men and officers return to postal service, after active defense service, shows how the Department of Post is cross subsidising the defense establishment;
(xi)              Last but not the least, India Post renders almost all services with highest quality.  In  fact, by six sigma yard stick, if its performance is measured, in every area, it is a six sigma institution, which most management pundits do not know or all ignorant of.
II.         In spite of the cost escalations due to pay-commission implementations, in-put costs etc the subsidy which the government gives to Department of Posts gives is far lower than the subsidy which the Govt. of India doles out to other sectors like oil industry, health care. (with all the subsidy of  crores to produce doctors they migrate and manage health care in UK, USA etc), education (With all the subsidy of crores to IIMS/IITS, largest contribution of these products are to migrate to Multinationals abroad) etc.  By reinventing newer sources of income, India Post had always kept its cost low to Nation.  By deploying its work force effectively and by training India Post had built itself into our Economic force multiplier at least cost.  By skilfully deployingICT technology it has served the business and people alike at least cost.
III.        Therefore, There is a need to study the proposed postal policy-draft critically, lest it harms this finest socio-economic institution of government of India and thereby harms the nation and the poor and the needy.
IV.        Another effect of utmost importance to take note is that the Department of Posts itself has started initiatives listed below (which this policy draft overlooks and fails to take note of ) which if passed will serve all the intended benefits, this policy-draft suggest:-
(i) Post Office Act 1898 (Amendment) bill (unfortunately withdrawn) :
 This bill takes into account almost all the suggestions/ areas for improvement touched by this policy – draft and goes much farther.  That draft bill looked at the sector as a whole (As this policy-draft does).  It tried to develop a level playing ground between the incumbent, India Post and the mushrooming  couriers (With no control and responsibility, dominated by multi-Nationals.  It envisaged a regulator for the sector as a whole, not necessarily from incumbent, India Post.  It suggested an universal service obligation fund (USO fund) to which all will contribute and draw from it as per their performance to rural, poor and remote areas (As envisaged internationally).  It clearly referred to ICT technologies and their use;  it tried to bring accountability and responsibility into a sector where couriers violated accountability and were siphoning the creamy business and pushing India Post to carry the burden of USO and  there by Government of India to carry the subsidy –burden,
Many of the ills, now alluded , in the policy draft could be avoided if that bill is enacted.  This policy draft is half hearted, focus lacking and does not look at the real role of India Post in the Postal sector;
(ii)               The Proposal to convert the 300 high yielding, sophisticated Postal finance marts into a Bank held by Department of Posts of Government of India;
      300 Postal finance marts, created at the lowest cost using mostly the existing infrastructure, computerised and doing many financial transactions like banking (Deposit taking), Insurance (Life by PLI and RPLI), General Insurance  in alliance with Oriient Life Insurance, a Govt.undertaking Mutual Funds (UTI, SBI, ICICI Prudential etc) Govt.Bonds (in alliance with IDBI), Money transfer (Money order, international Money transfer etc) etc are envisaged to be converted into a fully owned Government Postal Bank using central server technology, core banking etc.  The work is underway. A detailed tier-I, Tier-II capital structure etc were worked out and submitted in great detail by the Department Officers only (no great multinational consultant employed!). This bank in no way will affect the network’s pre-occupation with small savings but will augment it.  The old adage ‘credit begets deposits’ shows if the lending dimension is added, the result can be dramatic to the benefit of India.
This bank will be a great instrument, by which the subsidy given by government can be phased out. Government will actually get back its capital invested, when the bank is listed .These were the main features. This is in line with the model followed by Germany in creating Deuche Post Bank.
Can we not learn and implement it? By removing the government subsidy and placing India Post on level-playing-ground, the sought after purpose of this policy-draft can also be achieved.
(iii)              Postal infrastructure corporation proposal :
Postal Department has prime lands in major cities/towns. By creating a special purpose vehicle in bringing public-private partnership, the Department will benefit, without losing land-control and getting buildings with no investments, Private business will prosper along with Postal Department and public will benefit. This proposal, again prepared by Department officers themselves with no great consultant helping, is available. (When we say Private-Public partnership in Postal Sector, for land-use, ‘Private’ need not necessarily be confined to Couriers)
Can we not implement it?  The Policy-draft refers to private-public partnership without even studying this proposal  
(iv) This policy-draft talks about ICT initiatives repeatedly are we aware about the software/development centres, functioning successfully producing softwares already under use successfully?  Why not strengthen them?  Does it call for a separate policy?
(v) This-Draft talks about Postal Research work
Are we aware that the Postal Research centre was created as early as 1984, to become Asia’s premier R& D Centre?  Are we aware that it was not given adequate manpower? It was slowly merged with Postal Directorate?  With all these limitations, that R & D Centre created the concept of Multipurpose Counter Machines (Now used all over the Country); created the proposal for computerized money order pairing and Accounting (Now used in all postal accounts organizations); suggested for re-vamping of statistics collection and processing; suggested introduction of GIRO BANK (as in Europe) etc. Can not the R & D centre by revived, at least cost and supported?
V        These back ground information are required to be studied very carefully before the draft-policy, under discussion, is evaluated.  By talking about Postal “Sector”, the draft-policy appears to ignore the unique nature of the socio-economic role played by India post for the nation as a whole.  In the name of in creating the competition, if this institution is weakened it will be an irreparable loss to the country. By taking a narrow view of the “Postal Sector”, unique multi level contributions made by India Post should not be compromised, thereby making the common man and Indian business-competitiveness posterA legislative frame work, as envisaged in the amendment bill (Refer supra) should come first. Policy should follow it and not vice-versa.  By putting the policy-first and removing the legislation to back-benches, We are putting the cart before the horse. The Country will suffer.
VI ANALYSIS OF THE PROPOSED POLICY DRAFT:
(A)            INTRODUCTION: Given the above background, the draft is discussed below. However, there are certain broad issues to be kept in view:-
(i)    The Draft National Postal Policy, 2012 is seeking to cover the Postal sector, without looking at the special Indian context and the role of the exiting Principle player, viz  India Post, as a socio- economic development institution and seeks to take  an overly simplistic view. The special points discussed at pre-sections (I to V) are to facilitate to understand the reality.
(ii) The department of Posts is NOT only a Postal player, but also an economic institution, incomparable with the couriers, While laying the  rules of level-playing ground, one must not weaken Department of Posts;
(iii)            The draft has some good points and many weak points. They are analyzed below para by para:


PARA ON
COMMENTS
A.    Postal services originated out of the need for conveying the written word. They evolved over the ages, and grew in scope, spread and complexity. The post, today, is a ubiquitous network which serves the world by connecting individuals and communities, promoting trade and commerce, and reaching financial services to the common man?
(1)   The first para itself makes a wrong assumption when it says”……….and reaching financial services to the common man”
·        This is not factually correct.  As the discussions at pre-para show, it reaches not only financial services but also lot other services.
·        Department of Posts not only reaches financial services to common man, but also to business community (i MO, Financmats, mutual funds, International Money transfer etc), to the business community(Investment business), to affluent sectors(Government bonds etc).
B.     The current postal environment is complex and dynamic. Based on international experience, the status and direction of the postal sector can be summarized as under: Declining letter mail volumes, increasing electronic substitution, and growing competition.

(2) It abruptly jumps from National Context to International Context by talking about “declining bulk mail volumes”.  In Indian context, the situation is very complex.  Letter mail volume has not gone down but is partly now taken over by Courier, though under Sec-4 of PO Act, they are prohibited to carry letters. The couriers call them ‘Documents’ and carry. We all know that even government banks/insurance companies, PSUs are sending their mail through Couriers (for several reasons which need to be studied). Many of them are not even aware that they are violating the act.  Prima facie there is no decline in the letter mail volume but only diversion to Couriers illegally.  An illegal behavior of a player can not be legitimated by a policy.  It calls for an amendment to Act. That was what was attempted in a well crafted Post Office Act. Amendment bill (Since withdrawn for no good reason). That bill suggests in consistent with the international practice weight slab of 500gms for monopoly of Department of Posts).     
C.Though the principle of separation of regulator and operator is widely discussed, it is yet to find universal acceptance.

(3)  The Statement “Though the Principle of separation of regulator and operator is widely discussed, it is yet to find universal acceptance”.
It is not known how the draft came to a conclusion ‘that it is yet to find the acceptance’. At least in the Indian context, it is already well accepted: Examples are IRDA, TRAI, SEBI etc. Precisely, This type of regulator was suggested in the now withdrawn, Post Office Act amendment bill. By passing that bill, the sectors reform can start.
D.    Postal markets in emerging economies continue to be fragmented and unorganised
(4)  The draft assumes “Postal Markets in emerging economies continue to be fragmented and unorganized”.
 The author appears to be confused. There is a difference between ‘Market’ and Player’ in the market. Postal Market is a sector. Indian Post is a principle player. Despite other players (Couriers) in that market before 30+ years, India Post is still the dominant player. There is no fragmentation of the market. This market in India is well organized, even though there are small marginal players here and there. But in the last few years, the numbers of couriers are also getting consolidated.
E.     New business models are evolving from emerging economies, with increased level of resource sharing and cooperation among various service providers
(5)  The draft statement “over business models are evolving from emerging economics, with increased level of resource sharing and cooperation among various service providers”.
This is a bland statement, with no evidence cited. In which emerging economy which new business model has emerged? – Let the draft clarify. Then only a fruitful and meaningful analysis of facts Possible! This policy draft when it says “With increased level of resource sharing and cooperation among various services providers appears to be confused”. The problem is there. The couriers, having failed to develop effective delivery mechanisms, want to capitalize the network advantage of India Post, without making any commitment to legality or to universal service obligations. This draft indirectly tries to achieve this goal. This will affect the economy of the country with no  reciprocal benefits to the nation.
(6)  The draft correctly recognizes opportunities in the Internet based Commerce. Let each player show the innovativeness on his own. The courier Industry much bolstered by multinationals, want to have the cake and eat it too. They are not sufficiently investing  in proper delivery and booking models. They are not brining in capital and resources innovatively. They do not serve the sector. But they want cleverly, without accepting any legal ( act based ) Control, in  the name of  “ increased level of resource  showing “,the delivery network  from India Post. The policy draft does not show. What these resources which are supposed to the shared. Do all players have resources? If not, why?
As far as taking advantage of Internet opportunities, India Post has already done its best (..) E-Post,E-Bills, iMO etc.

F.     The environment, thus, poses overwhelming challenges to the postal sector. However, it has also thrown up many opportunities. Potential exists today for an overarching role for the postal sector in facilitating internet based commerce, as a trusted third party who provides a secured space for transactions. 'Cash on delivery services', fulfillment services for lightweight packets and just-in-time shipment of goods are some of the services for which demand is growing. The postal sector needs to be creative and innovative to capitalize on these opportunities.

(7)  The next para makes explicit that it is the country wide distribution system of Indian Post that is sought to be exploited by private countries, Why for the  past 35 years, private couriers failed to creat an effective distributive system? How much investment they have made in infrastructure creation? Why they do not have stable work force? Why wage laws and employment laws are not strictly followed?
It is the anti-labour policies of the private cuuriers that they do not have a wage policy, do not have a recruitment policy, do not have a reservation policy , do not have an investment policy etc. which has hampered their successful competition with the India Post on merit. The draft policy makes it to appear that it is the bounden duty of India Post to surrender its competitive advantage of distribution network to these couriers, who will slowly then kill India Post.

The National Postal Administration forms the core of the postal sector. A strong and self-sufficient National Postal Administration is essential for the survival of the sector, as this alone has a countrywide distribution network, which can be leveraged for profitable partnerships involving the private sector or other government agencies.

(8)  The point about the need for clearly saying what a ‘Letter’ is , necessity to have the authentic data regarding the number  of operators and the volume of mails they handle etc are well taken. The passing of the proposed amendment Act will help.


(9)  The draft policy is using the high sounding terms like Governance, standardization and quality of service. But, Can a mere policy do it? What comes first – a legal frame work (which would have happened if post office Act amendment bill now withdrawn has been passed) or a policy which cannot be enforced? World ever a proper legal basis is first put in place.

(10)  The draft policy is full of   hyperboles
           (i) “Attention at the policy level is fragmented. ICT environment of the postal service, which is contributing to under utilization of resources on many fronts“. Again it is a generalized statement .ICT environment for each player is different and will be structured to meet their  business requirement. In a competitive environment ICT is a competitive advantage creating mechanization .Why should it be shared? If any courier in India has an ICT advantage over India Post, Why he is still hankering after the distribution network of India Post? If he does not have,w hat ICT advantage he can share with India Post? World over how many postal administrations, even in developed countries, share their ICT advantage with competitor?
               

                   (ii)   Again the statement “…… the absence of organized efforts in HRD as planning and non-adoption modern practices …..” etc., made in the permeable are well taken. Department of Post is an organized Human resource organization. It has clearly laid down policies, practices etc. of training, recruitment and advancement, wages etc. It is the couriers who are anti-labor. They have not got clearly articulated HR policies and practices. Their investment in training is next to nothing. For whom, the draft is crying?

11. “The postal sector in India is in urgent  need of legislative and institutional reforms”. Well said. That is the purpose of the now withdrawn Post Office Act amendment bill? Why did we withdraw it even without a debate? Even now, It is not late. Let the bill be again debated and passed. All the evils now the policy- draft cries about can be corrected.

12 “The claim that National Postal Policy has been developed to address Systemic Challenges … “  etc. is erroneous in logic
(a)   A policy is no substitute to an Act. P.O Act amendment bill (now withdrawn) addressed this issue.
(b) The policy draft does not talk about any concrete “‘Systemic Challenges’. Every competitor – here, couriers-has his systemic challenge .Each has his customer audience. Let each face their challenge. Let the best win. However, well intentioned, Policy cannot replace the need for Act- amendment. Without accepting responsibility the couriers only want to take the advantages from India Post. This policy – draft attempts  only that.

13 (a) Everyone will agree that there should be an organized and well governed postal sector. But, how there can be “well   governed “postal sector, when there is no law to back it? Why then, the only attempt to do this in the form of Post Office Act Amendment bill was not followed up?
     (b)  “Provision of universal Postal services country wide”. The author of the policy  appears to be confused! There cannot be a “universal postal services country wide”, there is a UPU recognized “Universal (Postal) services obligation”. Again the PO Act (Amendment) Bill (Now withdrawn) tried to do this?
    (c) Promotion of partnership between private and public sectors is a cliché. Partnership is possible and necessary when two partners bring to the table advantages  by which both parties will be benefited. On the one side is India Post, with well established systems, man power, quality control, nationwide network, innovative product and kinds, ICT initiatives etc. The other side is the highly exploitative couriers(private sector), led by Multi nationals  like DHL, BlueDart etc., who have not invested in infrastructure building (Even in  distribution network), in Human Resources (no stable  work force, HRD etc.,) in universal service obligation (serving the  rural and remote areas etc)., What sort of partnership, this policy draft wants? It should first reform the couriers, make them accountable and then talk about partnership.
    (d) “Adoption of inclusive transparent processes for policy formulation, implementation and monitoring” Well said.
India Post, the largest postal player , as a government  institution follows all these. Who then lacks it? The couriers, Can we make them to follow these good points? .We cannot, because we have no legal machinery to do so!
Couriers come under no law. They dodge any legal obligation, In fact, are doing illegal Act. of carrying letters under the garb of ‘documents’ Everyone knows it.
The policy draft- preaches well. Let the policy say that the proposed P.O Act amendment bill should be passed to enable this. Then one can accept the neutrality of this policy- draft!

14. Leave aside the jargons like ‘Vision’, the ‘mission’ and the ‘objectives’ which in a sectoral context must be precise, let us analyze the objectives and strategies.
      (a) Developing an organized and well governed postal sector- Need is well recognized. India post fits this description fully. How do you make the other players wiz couriers to be well governed? “Governance ‘calls for ability to enforce. Can a policy enforce? Only an Act can. That was what was attempted by introducing ‘Post office’ Act (amendment bill) which has been withdrawn. Why?
              “The objective of providing efficient and effective basic postal services at affordable prices  to all sections of Population over all geography”- well said
               India Post Does it. Can this postal policy enforce this on couriers? Will they carry letters for the farthest corner of the India, at the same rate? Do they have fixed rates for all parts of the nation? Who will tell them to have a universal pricing structure? Only an independent regulator can. The post office act (amendment) bill, Which provided for such a regulator, stands withdrawn!
             “Leverage the network…………. for the growth the development of the postal sector” Which network or infrastructure or expertise, Can India post access from the couriers? The whole aim of the policy draft appears to be one way traffic for the benefit of couriers.
                   “Develop postal statistical indicates and include relevant Postal indicators, among broader infrastructure development indicators”
                  Well said, All players in the postal sector – India Post and all couriers – Should abide by this. How does one enforce it? , With a policy? No way.
                  The emotional appeal “to provide holistic support to micro, small and medium postal service providers and encourage. Entrepreneurship in the sector” sounds well.                 But, it  contradicts the preamble in this policy draft of not encouraging “fragmentation “
                 What a micro postal service provider will do in respect of delivery? Let us assume, he specializes entrepreneurially in delivery work alone. Can he ever get a break – even amount? That means, he will have to work even at a wage lower than the market wage. That means,another poor employee (Extra departmental delivery agent of India Post) will lose job. It is anti-labor. It is indirect downsizing. The same logic applies to other categories. What does the Policy – draft want? Downsizing of India Post? establish unifair wage practice? make the sector more unorganized?
                  “Integrate progress of development of postal sector with national ITC policy network and national development plans”- India post does it. Planning commission ensures it. Then, how do we make couriers, micro, small, medium couriers, (for whom tears shed in the last para) to adhere to this ? Can policy – draft do this?
                On achieving millennium goals, India Post side is clear:  how does one make this courier to do this, Can a policy enforces this? Only a clear amendment Act can.

“Ensuring basic postal services at affordable prices” that is what India Post Does and incur loss. It tries to make up the loss in value added services like speed post, registration and parcel etc.  But precisely in those businesses, the couriers enter and milk the creame business.  How to make them to serve at affordable prices? No policy can.  Universal services/obligations Fund can.  But it’s provision in the Post office Act amendment Bill died, when the bill was withdrawn, why? 
“ Upgrade both capacities and capabilities of the weaker link in the Postal Network to improve their effectiveness”  The draft policy, tacitly and indirectly acknowledged that the weak link for Couriers is their distribution network.  They should upgrade this by investments both in funds and in personnel.  They do not. Why?  because they are not accountable to any.  May be now, couriers will be doubly happy that this policy – draft will give them access to India Post’s distribution network, without any investment!  How will this policy prevent that?   Rest of the points are well said, should be so.

Well said – Should be so – But who enforces these Quality standards?   Only a neutral regulator can. Without the support of a legislation it is a pipe-dream.  Bring back the P.O. Act amendment bill (Now withdrawn) and pass it.

Well said – To achieve these obligations two steps are necessary
1. Make by Law, Couriers also spend on infrastructure a portion of their earnings.
2. Make the  access of Couriers to the National Postal administrations’ legal repository of addresses a fee – based one.

Well said – Let us do so –
For India Post , to take advantage of it, recreate “Postal R & D Center” with adequate manpower funds, infrastructure  and mandate
Let access to the “Postal, ICT and R&D fund” – be propositional  to the total activity category wise and coverage wise – rural, urban and semi urban –
Make it obligatory to all players to contribute a percentage of their revenue to this fund.
Let the independent regulator control this fund and amend the act to this extent.

Well said – Let us do so –
Good human resourse development is not the first step – It follows good human resourse – practice of recruitment, reservation, appointments, promotions, legal wages, redressal mechanisam etc.  Such good human resource practices are being followed by India Post. Couriers have no mandatory rule to follow – When they do not follow – good HR practices, how do you make them to do HR development and for which propose?.  The policy – draft is good in prescribing but good wishes alone are not good enough.

Joint Venture – For what?  If it is international, India Post has UPU and the link is enough, What a Multinational courier can give to a Govt. organization like India Post?  What are their track records?  There are already established rules in Govt. on joint venture with private sector.  They are equally applicable to Postal Sector. 

The thin end of the wedge is in this para:
1.       First of all a “Postal Dept. Board” is a wasteful exercise – Define the law clearly and enforce it. Let the competitive forces act.  The best result will come.  The replication of another tie of Govt. hierarchy is a waste and independent regulator can do that work.
2.     The statement “Amend the India Post office Act 1898 to meet the objectives of National Postal Policy” is unrealistic. First prepare the ground rules by amending the PO Act and stipulate the rules of the game for the Govt. Player, Couriers and Regulator.  Let everyone become responsible.  That was what was attempted in the last, now withdrawn, PO Act amendment bill. 

VII  CONCLUSION:   In summary, the following actions are needed:
1.                                                                                                                                                                                                             Bring back the well drafted equitable Post office act amendment Bill 2005-2006 (Now dropped);
2.                                                                                                                                                                                                    Debate it in public first and in parliament next and pass it to give the postal sector for progress, creating ground rules for each player to behave responsibly, with a regulator and USO fund in place.
3.                                                                                                                                                                                                               Govt should frame policies, thereafter, to enforce the act ;
4.                                                                                                                                                                                                               Present attempt to put policy first and amend the act based on it, is wrong unacceptable.

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