National Postal Policy 2012
Draft
Department of Posts
Ministry of Communications and information
Technology,
Government of India
Preamble
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.
Despite the advent of the digital revolution,
post is still the most economical and accessible among the different modes of
communication available to the public. The mandate of the postal sector is
three dimensional - being a channel for moving information, goods and money.
This mandate makes postal services a tool of development, an enabler of
commerce and a facilitator of the aspirations of the people.
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.
¨ Postal Administrations
which concentrate on the core business of mail are struggling for survival, while those which
diversified into nonmail businesses like financial services and e-Commerce are
successful in negotiating the changed environment.
¨ Postal administrations
worldwide are increasing their productivity by employing state of the art
technology.
¨\Though the principle of separation of
regulator and operator is widely discussed, it is yet to find universal
acceptance.
¨ Postal markets in emerging
economies continue to be fragmented and unorganised.
¨ New business models are
evolving from emerging economies, with increased level of resource sharing and
cooperation among various service providers.
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.
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.
The postal market in India is governed by the
Indian Post Office Act 1898. The Act entrusts the Central Government with the
exclusive right to collect and deliver letters, which is implemented through
the National Postal Administration. The term 'letter', however, is not defined
in the Act. A large number of courier operators are present in the postal
market in India. They are free to handle documents, parcels and other items of
mail which -do not fall under the category. 'letter'. No authentic data exists
regarding the number of such operators or the volume of mails they handle.
Entry and exit in the postal sector are free.
However, there are issues related to governance, standardization and quality of
service which call for institutional reforms. Such reforms are essential to
allow free interplay of market forces and the consequent stabilization of the
postal market. They are also required to ensure the delivery of efficient and
affordable universal postal services, which is essential for the geographical
and social cohesiveness of the country.
Effective governance of the postal market has
proved to be a key feature of reform in advanced countries. Hence any postal
sector in developing countries also requires an effective governance mechanism.
Another issue that needs attention at the
policy level is the fragmented lCT environment of the postal sector, which is
contributing to underutilization of resources on many fronts. The absence of
organized efforts in Human Resource Development and Planning, and the
non-adoption of modern practices in this area are also concerns, as they
deprive the postal sector of skilled workforce.
The postal sector in India is in urgent need
of legislative and institutional reforms to build the foundation for its future
growth. Governance, market development, definition of universal service
obligation and standardization of leT practices are important elements in this
reform process.
The National Postal Policy has been developed
to address the systemic challenges facing the postal sector and to enhance
contribution of the sector to the national economy. It recognizes the specific
needs, expectations and service requirements of governments, customers, postal
operators and other stake holders. The Government will use the Policy to
provide necessary guidance and direction to the postal sector with the aim of
maximizing public good.
Guiding Principles
a) Development of an organised and well governed
postal sector.
b) Provision of Universal Postal Services
countrywide.
c) Promotion of partnerships between private and
public sectors.
d) Provision of quality services at affordable
prices.
e) Adoption of inclusive and transparent
processes for policy formulation, implementation and monitoring ..
Vision
Organised and well governed postal
sector, recognised as contributing to the economic and social development of
the nation.
Mission
¨ To
maximise public good by providing reliable, efficient, secure and affordable
postal services
¨ To offer mail, courier,
express, parcel, logistics, e-commerce and remittance services to the entire
population of the country.
¨ To
promote the economic and social connectivity of the people in the country.
¨ To foster
sustainable development of the postal sector through an inclusive and
transparent institutional framework, good governance and adoption of fair
common standards and technological innovation.
¨ To
promote cooperation, interaction, resource sharing and fair competition among
stakeholders.
¨ To adopt global best
practices of Human Resources Management for developing a skiiied, committed and
motivated workforce.
Objectives
1. Developing an organised and well governed postal
sector
Better governance in the postal sector and
strengthening of the universal postal service will benefit citizens, businesses
and governments.
Strategies
a. To provide efficient and effective basic
postal services at affordable prices to all sections of the population over all
geographies.
b. Leverage the network, infrastructure and
expertise of the National Postal Administration for the growth and development
of the postal sector.
c. Develop postal statistical indicators
and include relevant postal indicators among broader infrastructure development
indicators.
d. Provide holistic support to micro, small and
medium postal service providers and encourage entrepreneurship in the sector.
e. Integrate programs for development of the
postal sector with National lCT Policy Framework and National Development
Plans.
f. Promote the role of postal sector in
achieving Millennium Development Goals as identified by the United Nations
2. Augmenting access to postal services
Access to postal services is critical for
disseminating information, conr1ecting individuals and communities, and
facilitating trade aild commerce. Appropriate and affordable technology
solutions are to be adopted to augment the access.
Strategies
a. Ensure basic postal services at affordable
prices.
b. Upgrade both capacities and capabilities of
the weaker links in the postal network to improve their effectiveness.
c. Integrate the physical network with
electronic services to provide value added products and services.
d. Implement a programme to encourage the
community, the civil society and the private sector to participate in
provisioning of postal servIces.
e. Recognise post offices as primary public
access points for Internet services,
e-Government services (tax, procurement, public utilities, passports, birth certificates, driving permits, pensions, social security benefits etc.) and
e-Commerce applications (online product/service ordering, delivery, payments, private utilities/services etc.)
e-Government services (tax, procurement, public utilities, passports, birth certificates, driving permits, pensions, social security benefits etc.) and
e-Commerce applications (online product/service ordering, delivery, payments, private utilities/services etc.)
f. Organise campaigns for increasing
public· awareness on the developmental role of the sector.
3. Enhancing the quality of service.
Enhanced quality of service at affordable
price is critical to the survival of the Postal Sector. Quality of service is
reflected in the degree of professionalism with which postal service providers
fulfil the changing needs of customers. Improving the quality of postal
services calls for investments in infrastructure, adoption of ICT, and raising
a well-trained and motivated workforce.
Strategies
a. Set up and enforce minimum and fair standards
in the postal sector, in line with global trends and documented best practises.
b. Develop quality measurement systems applicable
to all postal operators.
c. Utilise ICT in the provisioning of
postal services, especially in areas like automation of mail processing, and
adopt modern practices like data and address management systems and digital
stamping.
d. Enhance mail security by sharing knowledge,
experience and best practices with National Postal Administrations of other
countries and adopting statutes to enforce appropriate governance standards.
e. Develop a modern transportation network to
support countrywide conveyance and delivery of mail.
f. Enhanced cooperation with Universal
Postal Union, APPU, SAPU and other similar bodies for evolving common global
and regional approaches for improving postal services.
4. Developing postal and supporting infrastructure
Postal infrastructure consists of elements
like distribution networks, PIN code based address system, mail access points,
automated mail sorting systems and data management systems. Supporting physical
infrastructure on the other hand includes roads, electricity, and general
utilities. Service quality and cost of operations are directly related to the
state of postal and its supporting infrastructure.
Strategies
a. Define National Postal Infrastructure and
recognise it as essential Public Infrastructure.
b. Enable National Postal Administration through
legal and institutional framework to create National Postal Infrastructure.
c. Take steps to attract investment to
facilitate expansion of National Postal Infrastructure in rural and underserved
areas.
d. Identify National Postal Administration as the
repository of all postal addresses and support it with required legal
provisions.
e. Define addressing standards. Promote usage of
PIN Codes.
f. Formulate guidelines for infrastructure
sharing and partnerships.
g. Implement strategies to reduce the carbon
footprint of the postal sector, including harnessing renewable energy sources
like solar, biomass and wind.
5. Promoting the use of lCT in provisioning of postal services
ICT offers immense opportunities to the postal
sector to reduce cost, improve efficiency and enhance quality of service. Some
of the common areas of ICT deployment in postal sector are automation of mail
processing, mail coding, tracking of mail and ERP solutions. Interoperability
and standardization are two critical requirements that need to be met while
developing and deploying ICT solutions in the postal sector.
Strategies
a. Identify and analyse the emerging technologies
and business models to help the postal sector achieve sustainability in the
growing digital and mobile economies .
b. Promote, stimulate and support the development
of customised ICT applications for the postal sector.
c. Minimize usage of paper and paper
products in postal sector by promoting the use of relevant ICT solutions.
d. Create centres of excellence for training,
research and development of postal ICT products.
e. Create and maintain an open forum for
consultation and dialogue on matters of ICT in the postal sector.
f. Create a "Postal lCT and R&D
Fund" to ensure adequate flow of investment into postal R&D to enhance
utilisation of ICT in the postal sector.
6. Promoting utilisation of postal services to deliver national
programmes and e-services.
The addition of lCT capabilities to its
traditional strengths of last mile reach and trust of the masses will make the
postal network the ideal choice to deliver e-governance and e-commerce. The e-service solutions will improve the speed and efficiency of
service delivery to the citizens and institutions. The National Postal
Administration is the ideal implementation partner for government agencies in
growth and poverty reduction programmes.
Strategies
a. Identify challenges in public administration
for which solutions can be evolved by utilising the postal system and develop
adequate postal solutions to cope with them.
b. Promote cooperation and synergy between
government and private sector entities through the route of Public Private
Partnerships for achieving national goals and public welfare.
c. Transform post offices into public
delivery channel for services like
e-Commerce, e-Governance and financial inclusion programmes that involve a huge customer-base.
e-Commerce, e-Governance and financial inclusion programmes that involve a huge customer-base.
d. Develop appropriate National Address Database
Systems and applications using Geographic Information Systems (GIS) to support
the delivery of e-Services.
e. Provide a wide range of e-enabled value added
products and services.
7. Developing a framework for Human Resource Development and
Planning
Being a labour intensive sector, the quality
of manpower in the postal sector is the key determinant of the quality of the
services it offers. Untrained and unskilled manpower not only increases the
cost of operations but also affects quality of service.
Strategies
a. Develop vocational training programmes through
institutional linkages between the postal and other sectors and between the
postal sector and educational institutions.
b. Introduce specialised training courses for
postal managers.
c. Develop compliance mechanism for
implementatioil of relevant government regulations relating to employee
benefits and workplace practices.
d. Create centres of excellence with public
private partnership for Research and Development.
e. Encourage alignment of job qualifications and
recruitment processes with the requirements of the sector.
f. Empower each employee with essential IT
capabilities in areas of functional relevance
8. Promoting competition in the provision of postal services
Fair competition leads to consumer
satisfaction through lower prices, more choice and better quality of service.
Efforts aie therefore required to promote competition in the provision of
postal services so as to maxi mise benefits to customers, particularly those in
rural and inaccessible areas.
Strategies
a. Create a market responsive and well governed
postal sector that aspires to maximize customer satisfaction.
b. Develop a governance and legislative system
that promotes fair competition in the postal market and offers customers ample
choice.
c. Spell out modalities for forming Special
Purpose Vehicles (SPV) and Joint Ventures (JV) that would Promote collaboration
between the government and private sector in commerciai ventures.
d. Promote adoption of ethical practices in the
postal sector and consider adopting internationally recognized standards in
this area.
9. Develop an institutional
and governance framework.
Appropriate and responsive governance and
institutional framework acts as the foundation for the development of the
postal sector. Rapid advances in information technology as well as the
converge!1ce of technologies and delivery platforms offer· tremendous
opportunities for the development of. the postal sector. The backing of a
robust governance and statutory framework will enable the postal sector to
capitalise on these opportunities.
Strategies
a. Set up a 'Postal Development Board' for
overall development and governance of Postal Sector. Besides this, the Board
will draw roadmap for unbundling of functions (operations, regulation and
policy making) in postal sector over a period of time, in order to develop an
organized, competitive, effective, well governed and commercial postal market
in India.
The Postal Development Board will be chaired by Secretary (Posts) and will have
Secretary (Deity), Secretary (Commerce), Secretary (Economic Affairs) and two
members from Postal Services Board as full time members and part time members
from other stakeholder bodies and Ministries.
b. Amend the Indian Post Office Act 1898 to meet
the objectives of National Postal Policy.
c. Constitute Postal Advisory Council comprising
policy makers, postal operators, and other stakeholders. The council will be an
advisory body for effective implementation of the policy.
d. Create institutional framework for continuous
data collection from all . postal operators.
e. Adopt a pragmatic and equitable approach for
managing the USO.
f. Equip Department of Posts to handle
legislative issues in matters relating to exchange of goods through postal and
courier network and deal with international trade negotiations in WTO, GATS and
other multilateral and bilateral negotiations relating to the sector.
10. Strengthen the National Postal Administration
The National Postal Administration plays a
critical role in the postal sector by ensuring uninterrupted Universal Postal
Services and providing affordable postal and financial services to the less
privileged sections of the population. It operates in a complex environment of
government control and competition with private players. Strengthening the
National Postal Administration and transforming it into a reliable and trusted
business partner in the national economy is essential to maximize public good.
Strategies
a. Redesigning the business structure on modern
lines with the twin objectives of scaling up traditional silos of business like
mail, parcel, banking and insurance and capitalising on emerging opportunities
in areas like e-commerce, mobile-based services, e-governance, express and
logistics and financial retail services. The restructured business silos to be
given functional autonomy, wherever required.
b. Operationalize all post offices into a fully
converged digital network.
c. Redesign Human Resource policies
(recruitment rules, reward and recognition schemes, apprentice and internship
programmes, specialized training programmes etc.) to achieve the objectives of
National Postal Policy.
d. Creating a business environment that will
enable and encourage all stake holders of the sector to cooperate for mutual
benefit.
e. Establish Post Bank of India as the dominant
vehicle of financial inclusion.
11. Financing of postal sector
Effective implementation of objectives and
strategies forming part of the policy calls for adequate financing through the
following:
Strategies
a) Create an environment for attracting
international and domestic investments.
b) Endeavour to place postal sector projects
within the ambit of consideration of entities that provide project financing.
c) Provide a stable fiscal regime to st!mulate
investment and make . services more affordable.
12. Policy Implementation
Department of Posts, in consultation with
stakeholders, may develop a monitoring and evaluation framework for the
National Postal Policy. A mechanism may be evolved to monitor the impact of the
Policy in terms of achieving the objectives.
a. Establish a comprehensive Monitoring and
Evaluation framework for the implementation of the postal policy.
13. Conclusion
An efficient postal sector is a force multiplier in the economy,
promoting communication and commerce, and maximising public good. In the
information age, the postal sector is ideally placed to bridge the Digital
Divide. The National Postal Policy aims to facilitate the emergence of a
robust, organised and well governed postal sector in India. The Policy aims at
developing and deploying a participatory and transparent framework for policy
formulation, implementation, monitoring and evaluation for the postal sector.
SALIENT FEATURES OF DRAFT NATIONAL POSTAL POLICY,
2012
1. Setting up a 'Postal Development Board' for
overall development and governance of Postal Sector. Besides this, the Board
will draw roadmap for unbundling of functions (operations, regulation and
policy making) in postal sector over a period of time, in order to develop an
organized, competitive, effective, well governed and commercial postal market
in India.
2. Constitute Postal Advisory Council
comprising policy makers, postal operators and other stakeholders. The council
will be an advisory body for effective implementation of the policy.
3. Create, Institutional Framework for
continuous data collection from all postal operators. Collected data will be
used to develop postal indicators and quality measurement systems.
4. Develop minimum & fair standards and
quality measurement systems for all postal operators. Govt. to support small
and medium postal operators to provide quality services and encourage
entrepreneurship in the sector.
5. Create 'Postal ICT and R&D Fund' to
ensure adequate flow of investment into postal R&D to enhance and
standardize utilization of leT in the sector.
6. Promote Public Private Partnership for
Development in the sector.
7. Government to Develop National Postal
Infrastructure (transportation system, addressing database and standards,
automated mail sorting, database management systems etc.) which will be
sharable among all postal operators.
8. Develop Vocational training Framework for
the postal sector through institutional linkages between postal and other
sectors and between postal sector and educational institutions.
9. Adopting a pragmatic and equitable approach
for managing the usO.
10. Transform post offices into public
delivery channel for services like ecommerce, e-governance and financial
inclusion. Post Offices to be identified as Primary Public Access Points (PPAP)
for these services.
11. Strengthen India Post by redesigning
business structures with sufficient autonomy, digitizing and connecting all
post offices and establishing Post Bank of India.
12. lmplement strategies to reduce the carbon
footprint of the postal sector including harnessing renewable energy sources
like solar, biomass and wind.
13. Attract investment to facilitate expansion
of National Postal Infrastructure in rural and undeserved areas.
14. Organize studies and campaigns for
increasing public awareness on the developmental role of the sector.
15. Launch of Special Purpose Vehicle
(SPVs) and Joint Ventures (JVs) to promote collaboration between the government
and the private sector in commercial ventures.
16. Amend the Indian Post Office Act 1898 to
meet the objectives of National Postal Policy 2012.
