COMMUNICATIONS and Information Technology in the country is handled by the Ministry of Communications and Information Technology. The ministry contains three departments namely:
1. Department of Posts
2. Department of Telecommunications and
3. Department of Information Technology.
The salient features of these departments, main activities and initiatives taken by them in this sector are given here.
Posts
The modern postal system, the most preferred facilitator of communication, was established in India by Lord Clive in the year 1766 and it was further developed by Warren Hastings in the year 1774. The expansion of its network was made during the years 1786 to 1793. For the first time, the Post Offices were made regulated through an Act of 1837 on a uniform basis to unite all the post office establishments throughout the then existing three Presidencies into one all-India Service. Thereafter, the Post Office Act of 1854 reformed the entire fabric of the postal system and the Post Offices of India were placed on the present administrative footing on October 1, 1854, when the first postage stamp valid across the country was issued at an affordable and uniform rate of postage, fixed by weight and not by distance. For the first time the common man could use a facility which included free delivery of letters from door to door—a privilege previously enjoyed only by heads of states and state officials. Since then, the Post Office touched the life of every person of the country. Even though the British established the Post Office for imperial interests, it along with the Railways and Telegraph, became one of the great engines of social development. The statute presently governing the postal services in the country is the Indian Post Office Act, 1898. In the mid-nineteenth century, the Post Office served as facilitator of travel with its conveyance systems and by maintaining the dak bungalows and dak serais. Mail order services were started with the value payable system introduced in 1877, while fund remittances at the doorstep became possible from 1880 through money order services. With the introduction of the Post Office Savings Bank in 1882 banking facilities were accessible to all and by 1884 all Government employees were covered by the Postal Life Insurance (PLI). Besides providing postal communication facilities, the Post Office network has also provided facilities for remittance of funds, banking and insurance services since the latter half of the nineteenth century.
Organization Overview
The Department of Posts comes under the Ministry of Communications and Information Technology. The Postal Service Board, the apex management body of the department, comprises the Chairman and six Members. The six Members of the Board hold portfolios of Personnel, Operations, Technology, Postal Life Insurance, Banking and HRD and Planning. The Joint Secretary and Financial Advisor to the department is a permanent invitee to the Board. The Board
is assisted by the Secretary (Postal Services Board) who is a senior staff officer at the headquarters of the Department. Deputy Director Generals, Directors and Assistant Director Generals provide the necessary functional support for the Board at the Headquarters.
Postal Network
At the time of Independence, there were 23,344 post offices throughout the country. Of these 19,184 post offices were in the rural areas and 4,160 in the urban areas. Today India has the largest postal network in the world with 1,54,939 Post Offices, of which 1,39,222 (89.86 per cent) are in rural areas and 15,717(10.14 per cent) are in urban areas. Thus, the network has registered nearly seven- fold growth since Independence, the focus of this expansion having been the rural areas.
Expansion of the postal network especially in rural areas, has to a great extent been brought about by opening part time Gramin Dak Sewak Post Offices, a system unique to the Department of Posts. Under this system, postal personnel, called Gramin Dak Sewak are employed, subject to fulfillment of certain criteria, to run the Post Office for a period not exceeding five hours, and to deliver and convey mails on payment of a certain allowance. Such Post Offices offer mail, retail, savings bank, life insurance and remittance services in addition to disbursement of wages and pensions under certain social security programmes such as MGNREGS. On an average, a Post Office in India serves an area of 21.25 sq. km, and a population of 7,811 people. Post Offices are opened subject to fulfillment of norms regarding population, income and distance stipulated by the department. There is an element of subsidy for opening of Post Offices in rural areas, which is to the extent of 85 per cent of the cost in hilly, tribal, desert and inaccessible areas, and 67 per cent of the cost in normal rural areas. The postal network consists of three categories of Post Offices, viz. Head Post Offices, Sub-Post Offices and Extra Departmental Branch Post Offices. All categories of post offices retail similar postal services, while delivery function is restricted to specified offices. In terms of management control, accounts are consolidated progressively from Branch Post Offices to Sub-Post Offices and finally in Head Post Offices.
In addition to Post Offices, basic postal facilities are also offered through Franchisee Outlets and Panchayat Sanchar Seva Kendras.
Franchisee Outlets are opened in urban and rural areas where it is not possible to open a regular Post Office. In this scheme, only specified counter services are franchised, whereas transmission and delivery of mails along with small savings scheme are not franchised.
Panchayat Sanchar Seva Kendras are opened at Gram Panchayat Headquarters where Post Offices do not exist. This scheme is implemented by Gram Panchayats through an agent appointed by them. As on March 31, 2015 there were 2,066 Franchisee Outlets and 2,658 Panchayat Sanchar Seva Kendras (PSSKs) functioning in the country. Rural Business Leveraging the vast rural network of Post Offices, spread across the length and breadth of country, to provide services relevant to the rural areas, and generate revenue for the department is a core focus area for the department.
Over the years, ‘Financial Inclusion’ has emerged as the focus of the activities of the Rural Banking (RB) Division, though it is engaged in a few other sectors also. The Division has been entrusted with disbursement activities of various Government sponsored social security schemes
like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Indira Gandhi National Old Age Pension Scheme (IGNOAPS), Indira Gandhi National Widow Pension Scheme (IGNWPS), Indira Gandhi National Disability Pension Scheme (IGNDPS) and Indira Gandhi Matritva Sahyog Yojana (IGMSY).
So far, a sum of ₹ 59,958 crore has been disbursed under MGNREGA Scheme through 6.82 crore Post Office Saving Bank accounts. One of the most important contributions of the department is bringing approximately 8.5 crore rural people into the ambit of formal financial services, achieved through opening Post Office Saving Bank accounts for them, for disbursement of social security scheme payments.
Providing services to third parties such as collection of data for compilation of Rural Consumer Price Index (CPI) on behalf of Ministry of Statistics and Programme Implementation is another emerging business area, along with making the rural postal network a significant component of India’s emerging countrywide digital payment network. For this purpose, each GDS Post Office is being provided connectivity to the Central Server of the postal network, along with a Micro-ATM enabled point-of-sale machine.
Initiatives in Service Quality Improvement
Project Arrow
‘Project Arrow’, an initiative to transform Department of Posts into a vibrant and responsive organization and to make a visible and positive difference to quality and efficiency of service to the customers, was conceived in April, 2008.
In specific terms, Project Arrow entails comprehensive improvement of the ‘core operations’ of the Post Offices as well as modernized ambience under ‘Look & Feel’ silo of the project. Enhancing the quality of services in ‘core areas’ envisages focus on mail delivery, remittances, savings bank and office service levels through continuous monitoring of Key Performance Indicators, identifying problem areas and take remedial action on a real-time basis, including making systemic changes to improve service quality. This has helped the department to emerge as a one-stop shop for retail products and offer a single window facility for small savings, money remittances and other financial products and services including social initiatives such as the National Rural Employment Guarantee Scheme and National Old Age Pension Scheme. The monitoring of ‘core operations’ is being undertaken in more than 23,500 offices. ‘Look & Feel’ of the Post Offices have been improved in 2,940 Post Offices.
The Project Arrow experience is a working model for ushering in an integrated and lasting improvement in the postal system. Looking at the impact of the project, the department is carrying it forward. ‘Look & Feel’ activity is being undertaken in 297 more post offices during the year 2015-16 and under the 12th Plan it is proposed to improve the ‘Look & Feel’ for 2,500 Post Offices. Mail Network Optimization Project
initiatives to streamline mail operations and improve the quality of mail services across the country. The online Track and Trace system for Speed Post and Registered Mail has been developed to provide complete end-to-end tracking information on the website (www.indiapost.gov.in). Online tracking facility for parcels has also been introduced. India Post has also formulated a plan to restructure its parcel network in order to provide a reliable distribution channel for e-commerce shipments. Mail processes and delivery arrangements pertaining to ordinary mail have also been improved upon in order to enhance quality of services offered in both urban and rural areas. Infrastructure at mail offices is being upgraded to improve the operational efficiency.
Automated Mail Processing Centres
With a view to automate Mail Sorting process and expedite delivery of mail, the department has set up Automated Mail Processing Centers (AMPCs) at Delhi and Kolkata. These centres are equipped with a Letter Sorting Machine and a Mixed Mail Sorter with sorting speed of 35,000 and 18,000 items per hour. Action has also been initiated to set up more AMPCs at Mumbai, Chennai, Hyderabad and Bengaluru.
National Address Database Management System
The department has initiated a new project named National Address Database Management System which involves creation of a comprehensive address database to expedite delivery of mail.
GPS Equipped Mail Vans
The department has decided to equip its entire fleet of Mail carrying vehicles with Global Positioning System (GPS) device in order to monitor mail transmission and delivery more effectively. It is likely to be completed in FY 2015-16.
Development of Road Transport Network
The department has taken a new initiative to develop a dedicated road transport network for safe and secure transmission of mail and parcels. The project has already been implemented on identified routes in five states and is being extended to other parts of the country.
Technology Upgradation
The IT Modernization Project of Department of Posts was approved by the Government of India in November 2012 as a Mission Mode e-governance Project with an outlay of ₹ 4,909 crore. The project aims at transforming the Department of Posts’ operational efficiency and improving service delivery of operational and administrative units through upgraded technology and connectivity.
Networking of all 1,55,000 post offices covering the remotest parts of the country will enable track and trace of all kinds of accountable mails and parcels in the country, besides providing real-time information to facilitate customer feedback and management functions.
The implementation of the project started in the year 2012-13 and is expected to be operational by the year 2017. The Project is being implemented in eight segments and the entire project has entered its implementation phase.
April 03, 2013 and Disaster Recovery Centre has been powered on at Mysore on May 15, 2015.
As part of the Network Integrator stream of the project, 27,561 locations have been networked under Wide Area Network (WAN), thereby making it the largest WAN in the country.
The Financial Systems Integrator stream of the project aims at computerizing through one central platform of the Savings Bank and Postal Life Insurance (PLI) operations of the department. Core Banking Solution has been made operational in 3,811 Post Offices and 124 ATMs have been commissioned. 14,850 Post Offices have gone live in respect of computerization of PLI.
The Core Systems Integrator (CSI) stream of the project aims at computerizing through one central platform of all the postal, mails and counter operations of the post offices, apart from implementing computerization of finance & accounts and HR functions of the department. CSI project is also in the implementation stage.
The Change Management stream of the project aims at preparing all the employees of the Department including Gramin Dak Sewaks to enable them to function effectively in IT environment. The training activities are in progress.
The Mail Operations Hardware stream of the project aims at supply of required hardware to Mail Offices and hand-held devices to postmen staff of the Post Offices.
Rural ICT Project aims at computerizing approximately 1,30,000 rural Branch Post Offices in the country by supplying computer hardware, other peripherals, solar charging devices and providing network connectivity, development and deployment of software for MNREGS, e- MO, etc., to them. Supply and installation of hardware in Branch Offices in pilot phase will commence in December, 2015.
New and Value Added Services
Speed Post
Speed Post was started in August 1986 for providing time-bound and express delivery of letters and parcels weighing upto 35 kg between specified stations in India. It is the flagship product of Department of Posts and the market leader in the domestic express industry with monthly volumes of more than 3 crore articles. The facility for booking is available in almost all the departmental Post Offices in the country and is delivered across the country.
Speed Post offers time bound and assured delivery of letters, documents and parcels weighing upto 35 kg across the country. Delivery norms are fixed taking into account the fastest available mode of transport between stations. It is managed as a business service, with a commercial approach in its operations and management.
Speed Post delivers ‘Value for Money’ to everyone everywhere, delivering Speed Post upto 50 grams @ ₹ 35 across the country and local Speed Post upto 50 grams @ ₹ 15, excluding applicable Service Tax.
Speed Post articles can be tracked online by using a 13 digits Speed Post article number through the India Post web site (www.indiapost.gov.in) or by sending an SMS ‘SMS POST TRACK’ <13 digit article number> on 166 or to 51969.
Department of Posts also sends free SMS alert on the mobile number of the sender when the article is delivered as well as addressee’s mobile number when the article arrives at the Post Office for delivery subject to the updation of mobile numbers at the time of booking.
Insurance facility upto the ₹ 1 lakh is also provided as an add-on service for Speed Post articles.
Round the clock Speed Post booking facilities are available in select offices in some major cities. Value additions under Speed Post In order to meet the needs of the customer the following value added services are provided:- Credit facility under Book Now Pay Later (BNPL) scheme. Free pick-up facility. Volume based discount facility. Cash on delivery facility. Delivery of notices/summons issued by various High Courts through Speed Post Department of Posts, as a new initiative, started booking of Notices/ Summons issued by Hon’ble High Court of Delhi through Speed Post Service with Proof of Delivery facility with effect from February 3, 2014. The Proof of Delivery in its return transmission is also booked under Speed Post Service. The Proof of Delivery is also provided in a soft copy format through ePost to the judiciary. The service has been extended to Odisha High Court w.e.f. January 6, 2015.
ePost
ePost is unregistered hybrid mail provided for both retail as well as corporate customers providing electronic transmission of messages which may include text messages, scanned images, pictures, etc. and their delivery in hard copies at the destination through postman/delivery staff. Presently, ePost booking facility is available in more than 13,000 post offices and are physically delivered through a network of more than 1.54 lakh Post Offices across India.
ePost corporate service enables corporate customers including Government Departments, PSUs (Public Sector Units), SMEs (Small and Medium Enterprises), Companies, etc. to draft, design and send messages as per their business requirements from their office premises by using the internet. ePost Office
ePost Office is an eCommerce portal of the Department of Posts which provides selected postal facility to the common man through the internet. This portal aims at providing a convenience to the public for availing select postal services from their home/office using their own computer and internet. Customers can buy philatelic stamps and pay PLI/Rural Postal Life Insurance (RPLI) premia online using Credit/Debit card through this portal. The customer would need to register on the website for the first time.
elPO (Electronic Indian Postal Order)
citizens living abroad to pay RTI fee online through the ePost Office portal (https://www.epostoffice.gov.in). The facility has been extended to Indian citizens living in India w.e.f. February 13, 2014.
Express Parcel and Business Parcel
The increasing e-Commerce market in India has given a boost to the parcel segment where B2C parcels are on rise. At the same time there is a demand to cater to the needs of the C2C category parcels also. Accordingly Express Parcel and Business Parcel services were introduced w.e.f. December 2, 2013.
a) Express Parcel is a premium parcel service available for retail as well as bulk customers, offering time bound, safe and secure home delivery of parcels. To have minimal transit time these parcels are given airlift wherever needed. Minimum chargeable weight of Express Parcel is 0.5 kg whereas maximum chargeable weight for retail customers is 20 kg and for contractual customers it is 35 kg. The service initially available between 20 identified cities has been expanded across the country w.e.f. November 1, 2014. b) Business Parcel aims to provide an economical distribution solution to corporate customers by providing surface transmission of the parcels. Minimum chargeable weight of parcels in this category is 2 kg and maximum weight is 35 kg. and is available for all locations in the country. Flat Rate Parcel To provide convenience to its customers and with a view to standardize its parcel size and shape, Flat Rate Parcel service was introduced on February 4, 2011. It is an air express parcel service providing an added convenience to the customers by offering them pre-paid Flat Rate Parcel boxes available in three weight slabs viz. 1 kg, 2.5 kg and 5 kg. Flat Rate Parcel boxes are sold at Head Post Offices and other identified computerized Post Offices and delivered across India including rural areas. This service is available for international parcels also.
Cash on Delivery
Increasing trend for online shopping has tremendous business opportunities for payment services,