The perennial gap in the state-run entity s revenues and expenditures has skyrocketed in recent years and touched a staggering Rs 15,000 crore in FY19, according to data reviewed by FE (see chart).
India Post s annual deficit is now much higher than the losses incurred by top loss-making PSUs like BSNL and Air India, which reported losses of Rs 8,000 crore and Rs 5,340 crore, respectively, in FY18.
Like other loss-making public sector enterprises, India Post s finances are weighed down by high pay-and-allowance costs, now at over 90% of its annual revenue.
For a universal service like postal service, losses will be there as there are more post offices in the country than bank branches (1.16 lakh) of all commercial banks put together, an official said. However, the huge mismatch between the product-service and price charged by the postal body needs to reduced, he added.
The Expenditure Finance Committee, headed by the expenditure secretary, recently told the postal department that it has to be self-sufficient by levying adequate user charges as the Centre's Budget could not absorb such recurring annual losses. Costs are going up but revenues are falling because of fall in volume due to substitution. People have shifted to email, phone calling, etc," another official said.