LIKE IRDA AND TRAI NOW PRAI-POSTAL REGULATORY AUTHORITY

MUSHROOM GROWTH OF COURIERS WILL BE CURBED

Govt drops plan to bar pvt couriers from carrying packets below 500 gm
A new regu lator on the cards for India Post and private courier firms would fix the tariffs for their services.
The government has comprehensively re-drafted an earlier Bill on postal regulation with a view to bringing the entire communication industry under a regulatoryregimesimilartothe one for the telecom sector.
Asperthere-draftedBill--the Post Office and Courier Services Bill, 2010--which was reviewed by FE, the courier firms would need to register themselves with the regulator--Postal Regulatory Authority of India (PRAI)-and adhere to a set of guidelines for qualityof servicesframed by it.Thefirmswillalsohavetocontribute to a Universal Service Obligation Fund (USOF) to enabledeliveryof postalservicesto financially unviable areas at affordable rates.
However,thegovernmenthas droppedthecontroversialprovisionintheoriginal(2006)draftof the Bill which sought to bar private courier firms from carry ing packets weighing below 500 gm.Also,inadeparturefromthe original draft, which specified the fee structure for the players, the new Bill has left such matters for the regulator to decide.
Thesizeof theIndiancourier industry is over Rs 4,000 crore with major players being DHL, FedEx India and DTDC.
As per the latest proposal, PRAIwillhavefunctionssimilar tothatof telecomregulatorTrai.
It can suo motu recommend to the government policy measures on the entire gamut of the postalsector.Onitspart,thegovernmentcanseekitsrecommendationsonissuesof importance.
Once PRAI is constituted, all existing courier firms would have to register themselves with it for a 10-year period on payment of a fee. The registration, of course, can be renewed once it expires.
Theregulator would seteligibility criteria for those wanting toenterthesectorinthenewregulated regime. It would have powerstorecommendtothegovernment revocation of licences of any firm which fails to meet the criteria set out by it.
The government (read the department of post and a reinforced Postal Board) would retain the powers to make policies and provide licences.
A Postal Dispute Settlement and Appellate Tribunal would be set up to arbitrate on disputes between the industry and the regulator, the regulator and the government, industry and the government; and between industry players.
The courier industry had, in the past, opposed the plans for regulation and the proposed USOF.
The plantobarprivatecourier companies from carrying letters up to 500 grams, retaining this lucrative segment for the department of posts (DoP), was most contested by the courier firms as 60-70% revenues come from this segment. Later, the planning commissionhadalsostoodbythe courierfirmsinthisregard.
The earlier Bill had also proposed a 10% levy on the gross revenues of courier companies towards USOF.
Source-The Financial Express