India Post Franchise Scheme

Name of the Organisation : India Post (indiapost.gov.in)
Type of Facility : Franchise Scheme

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India Post entrusted with the Universal Service Obligation of increasing access to basic postal facilities throughout the country. Even though India has the largest postal network in the world, with over 1.55 lakh post offices, including 89% in the rural are, there continues to be a demand for post offices. There is a constant demand from customers to open more post offices especially in newly developing urban agglomerations.

http://www.indiapost.gov.in/Franchise_Scheme.aspx

To meet this India post had introduced the franchise scheme through which the counter services are to be franchised, while delivery and transmission will be continued through the Department. The franchisee will provide service across the counter for a minimum defined time schedule with flexibility to work round the clock.

What can be offered by Franchise outlet? :
Sale of stamps and stationery.
Booking registered articles, speed post articles, money orders.
Functioning as an agent for Postal Life Insurance (PLI) and provide related after sales service, including collection of premia.
Retail services like bill/tax/fine collection/payment services of the Department.
Facilitating the provision of e-governance and citizen centric services.
Any other service introduced by the Department in future through its outlets.

How to Become a Franchisee? :
Applicants for franchises would need to submit an application in a prescribed proforma. The selected franchisee will sign a Memorandum of Agreement with the Department .Criteria for selection have been fixed considering the need to select persons with the capacity to manage and market a range of products, along with a sense of the community needs and public aspects of the job, and willingness to accept technological options.

Details of the Scheme :
Introduction :

(1)The Department of Posts is entrusted with the Universal Service Obligation of increasing access to basic postal facilities throughout the country. Even though India has the largest postal network in the world, with over 1.55 lakh post offices, including 89% in the rural are, there continues to be a demand for post offices. Post offices in the rural area are incurring more than the permissible level of loss. In the urban area, where a minimum of 5% profit is required as per norms, over 50% of the single and double handed offices are incurring losses. There is a clear need to reduce the deficit, while increasing access to post office facilities. Under the 10th Plan the Department is required to rationalize the network and explore new viable avenues for expansion of its network. The objective is to optimize the resources with a view to achieving self sufficiency while continuing to fulfill the Universal Service Obligation. There is a constant demand from customers to open more post offices especially in newly developing urban agglomerations.

(2) Basic features of the urban franchise model :
2.1 Only counter services are to be franchised, while delivery and transmission will be continued through the Department. Linking arrangements for the franchised outlets will be provided by the franchisee.
2.2. The franchisee will provide service across the counter for a minimum defined time schedule with flexibility to work round the clock.
2.3 Products and services offered
1. Sale of stamps and stationery
2. Booking registered articles, speed post articles, money orders (on EDBO model), e-post, etc. (no bulk booking to be taken up in franchised outlets)
3. Functioning as an agent for PLI and provide related after sales service, including collection of premia. (subject to fulfillment of criteria for PLI agents)
4. Marketing products for which the Department has a corporate agency or tie-up and provide related follow up services. (subject to agreement with the other organizations involved)
5. Providing retail and bill/tax/fine collection/payment services of the Department.(subject to agreement with the other organizations involved)
6. Facilitating the provision of e—governance and citizen centric services (subject to agreement with the other organizations involved)
7. Any other service introduced by the Department in future through its outlets which is considered amenable to the franchise model. (subject to agreement with the other organizations involved)
The model has adequate flexibility built in to allow a range of services to be extended through the outlets according to the need demand, and to increase the range when found necessary. Thus, the range of counter services that can be offered through different outlets can vary, keeping in view the location and its capacity to generate revenues.

2.4 Implementation Strategy :
In the initial phase and for the present, the urban franchise model will be implemented only in fast developing areas of urban growth like metros and their satellite towns, as also such urban areas where there is a justification for post offices on the distance and population norms but there is difficulty in providing the same through redeployment. The further extension of the scheme can be taken up after the results available from experience of the initial phase – say after six months of initial launch.

2.5 Viability :
The viability of each franchise only requires to be assessed by the concerned field unit so as to ensure adequate returns to the franchisee. The expected minimum revenue, would depend on the range of services, particular location, potential revenue, the investments that the franchisee is willing to make, the cost likely to be incurred by the Department in providing support facilities, etc.