Postal Dept Considers Real Estate to Overcome Financial Loss

January 24, 2008	(Be the first to rate this story!)  Loading ...
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Undergoing severe financial debacle, the postal department is all set to discover new areas for revenue generation, which even includes commercial use of huge real estate at its disposal to guard against any debt trap.

The sector is witnessing an annual loss of more than Rs 400 crore which is the major factor for the shift over of a chunk of postal business going to private competitors. At present the government is taking serious steps and is working on different proposals including commercial use of land, to make this over 100 year’s old institution financially viable.

The department has huge properties in each circle including some ream areas like Nariman Point in Mumbai. The land is either lying vacant or is leased out at a meager rent, senior officials said, adding these would now be used for commercial purpose to earn revenues.

It is very possible that the government will create a Special Purpose Vehicle (SPV) to bring the postal department out of losses and earn revenues. This is for the first time that Communication and IT Minister A Raja has taken a view on the issue.

As per officials a Cabinet note for creation of SPV would be moved soon. Asked by when the department would place the matter in the Cabinet, officials said the matter would be taken up within a month.

The department is also working on innovative schemes like instant money order, air transfer of logistics and computerisation of main centers. These efforts would help India Post become self-sufficient in the coming years, they said.

Speaking on the same, General Manager J Samuel said “we are expecting a revenue of about Rs 550 crore for the current financial year, up from about Rs 450 crore.”

News Published Under:   Real Estate India |

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