The Hindu Business Line : Postal dept move will hit courier industry: Assocham

THE Department of Posts' (DoP) move to ban private courier companies from delivering packets weighing up to 500 g would cripple the Rs 5,000-crore express industry, feels the Associated Chambers of Commerce and Industry.

Any decision to restrict private couriers would not only impact the express industry and over 500,000 people employed in the industry in both organised and unorganised sector, it would also mean higher cost for a monopolistic sub-quality service, according to the chamber.

The chamber also feels that the Government's move to safeguard the DoP from competition is against the spirit of free market and entrepreneurship.

Nearly 50 per cent of the revenue of the courier firms comes from carriage of packets weighing less than 500 gm. At present, there are more then 2,500 big or small courier firms with revenue turnover of around Rs 5,000 crore and annual growth rate of around 30 per cent, according to the chamber.

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