Postal Department Incurs Loss Of Over Rs.7 Per Post Card , Rs.5 Per Inland Letter

05 April, New Delhi

The Department of Posts is incurring a loss of over 7 rupees per postcard and about 5 rupees per inland letter as the revenue earned is far lower than the actual cost.

As per the 2013-14 figures of the Department of Posts, the average cost of a postcard is 7 rupees 53 paise while the revenue is 50 paise, whereas for inland letter the cost is 7 rupees 48 paise and the revenue earned is 2 rupees 50 paise.

Most of the services of the postal department are incurring losses barring competition postcard, letter and book post of periodicals.

The average revenue earned for services such as parcel, registration, speed post, insurance, money order, Indian postal order and registered newspaper is also lower than the average cost.

During the financial year 2013-14, the deficit of the department was 5,473 crore 10 lakh rupees as against the previous year’s deficit of 5,425 crore 89 lakh rupees, which is an increase of 0.87 per cent, the Department has said in its annual report.