The Indian Department of Posts (DoP) is likely to set up a separate entity for managing e-commerce services by next year, in a bid to cash in on the burgeoning demand for delivery and logistics, says a PTI report.
In a recent meeting chaired by Prime Minister Narendra Modi, DoP shared its plans to conduct a financial feasibility study for establishing a separate entity for e-commerce by October this year and start the operations by next year, PTI learnt from a source.
Further, DoP is likely to appoint an on-board consultant for development and operationalisation of business and marketing strategy for commerce market by July this year.
Commenting on the matter, Communications and IT Minister Ravi Shankar Prasad had earlier said:’ India Post with the world's largest postal network is best suited to offer delivery services to e-commerce firms.’
According to the report, Indian post network has around 1.55 lakh post offices out of which around 1.40 lakh are in the rural areas. Moreover, each post office serves an area of 21.21 sq. km and a population of 7,175 people.
Sources further revealed to PTI that DoP might strengthen e-commerce segment in terms of resources and infrastructure by April. Also, the department has plans to set up parcel processing hubs, dedicated transmission and mechanised delivery system by July2015.
DoP has ventured into an agreement with domestic online players such as Flipkart, Snapdeal, Amazon and Shopclues. Besides, India post has recently joined hands with e-Bay and Japan Post.
Offlate, PM Modi had set up a Task Force in 2014 to encourage and strengthen the postal department network by enhancing the role of India Post in financial inclusion, along with other services like providing logistics for online retail firms.