Perceptions and the Post Office

A special feature on India Post (Department of Posts, Government of India) published in the Economic Times  dated 7 March 2011 has focussed the spotlight on the organisation.  It also left the staff and officers of the Department wondering about some of the figures and statements that appeared in the feature. The following few points may put the records straight :

Firstly, about the discussion on deficit.  It is true that during last two years, the expenditure has increased. But it is also well known that this increase is largely on account establishment cost going up consequent to implementation of  Pay Commission recommendations.  All Government departments whether in public service or otherwise, are in a similar situation.  India Post is also in an unusual situation of having to manage pensionary expenditure from its own budget. If this component of expenditure is overlooked, India Post's finances are not far from breaking even. With regard to revenue of the Department, the two main sources of revenue, tariff for mail and remuneration for savings bank are administered.

Secondly about technology.  It is true that post office computerization started nearly fifteen years back.  But the process was incremental and on stand alone basis.  A project to computerize and network all post offices by 2012-13 is now under implementation.   This will be a comprehensive and progressive solution, in tune with the customers' needs and expectations. It will create a platform for new services including extensive financial services, e-commerce and joint products from various corporate partners.

Thirdly about Post  Bank.  This Deprtment has got a report from consultant in this regard which is under processing.  It may be mentioned, till last year RBI did not show any inclination for issuing banking licenses.   Further to convert the Post Office into an effective banking outlet, the required networking and specialized banking package have to be put in place. These pre-requisites are under implementation now.

Fourthly about structure of the organization, leadership and continuity. There are as many  corporatized  Post Offices which have  failed as those which succeeded. In this regard continuity of vision and ability to transform are important.  But it is simplistic to assume that the entire vision and drive for change flows from one top person.  Leadership at all levels with a committed group for transformation is required.  That is what India Post is striving for at this juncture when it is going through a transformation excercise, for which concrete plans and definite timelines are in place. 

Today, the 150 thousand strong organisation stands mobilised as a single team in pursuit of this objective, and the goal is well within reach.