India Post to Become Logistics Giant

23 Sep 2024 CW Team

The Indian government is looking to transform India Post into a comprehensive logistics company, with a target to boost its revenue by 50-60% over the next 3-4 years. Speaking at the Public Affairs Forum of India event, Union Telecom Minister Jyotiraditya Scindia revealed that the postal department's annual revenue currently stands at Rs 12,000 crore. The minister expressed his goal of increasing this figure significantly through the diversification of services and by capitalizing on the department's extensive reach in rural and remote areas.

Scindia stressed the need for India Post to evolve from its traditional mail and letter services, pushing for innovations in logistics operations. The strategy will focus on route optimization and tapping into multiple transport methods to enhance efficiency. This transformation will allow India Post to offer comprehensive logistics solutions, bringing essential services closer to people in far-flung areas.

Additionally, the government is making significant investments in infrastructure in the Northeast region, with Rs 48,000 crore earmarked for road development. Scindia also highlighted the ongoing efforts to provide mobile connectivity to 25,000 villages across the country, including 6,000 villages in the Northeast, that currently lack network access. Through the Universal Service Obligation (USO) Fund, the government plans to install mobile towers in these villages by mid-2025, ensuring that no village is left without mobile connectivity. These initiatives are poised to bolster India Post's transformation and the broader development of the country’s infrastructure.

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