India Posts today launched two new parcel services, under which it will provide free pick up for orders above Rs 7,500 and cash-on-delivery for consignment value of up to Rs 50,000, with an aim to generate additional revenue of Rs 100 crore in a year.
"Many E-commerce companies have shown interest to use parcel services of India Posts. They have been demanding for more value addition to existing parcel service. Hence, we are launching Express Parcel and Business Parcel service,Department of Posts Secretary P Gopinath said while launching the two services -- express and business.
The Express Parcel is an air mail service which will be shipped through airlines, while business parcel will be delivered using surface transport system.
India Posts has fixed service charge for Express Parcels in the range of Rs 30 (local service) to Rs 80 (for delivery in other state) for items weighing up to Rs 500 gram. It will charge Rs 8 to Rs 20 for additional 500 gram up to 5 kg and Rs 10 to Rs 22 for every additional 500 gm thereafter.
For business parcels, customers will have to pay in the range of Rs 45 to Rs 115 for items weighing up to 2 kg, Rs 12 to Rs 30 for additional 1 kg up to 5 kg and Rs 14 to Rs 32 thereafter for every 1 kg.
"We expect business of about Rs 100 crore from this service within a year from now," Gopinath said.
Though Business Parcels will have a nationwide coverage, the Express parcels will be initially available between 20 identified cities - Agra, Bangalore, Bhubaneshwar, Chennai, Delhi NCR, Patna, Guwahati, Hyderabad, Indore, Jaipur, Jammu, Kolkata, Lucknow, Ludhiana, Mumbai, Pune, Parwanoo, Shillong, Surat and Thiruvananthapuram.
Gopinath said that Express Parcel will be expanded across the country by end of 2014 in a phased manner.
"These services will be available for all not just for e-commerce companies. There will be free pick up facility for parcels where we can get minimum business of Rs 7,500 from that order. Pick-up services will be initially available for customers who enter into agreement with us," she said.
"Parcels booked under both the services will be delivered at most in 72 hours," DoP's Director for Mail and Speed Post Service Pranav Kumar said.
Source:-The Economic Times
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