WHY POSTAL DEPARTMENT IS IN LOSS & WHAT IS TO BE DONE FOR WORKING WITH OUT LOSS

POSTAL TRAFFIC AT A GLANCE FROM 1938-39 TO 2006-07.

                                [IN MILLIONS]

NAME OF SERVICE	1938-39	1951-52	1952-53	2005-06	2006-07
UN REGD.	1178	2249.4	2611.7	6492.16	6459.87
REGD.	43	85.6	91.3	208.56	217.31
MO’S	43	53.3	57.1	95.79	99.10
TOTAL VALUEOF MO’S[RS.]	820	2150	1980	71834.30	77557.06

FINANCIAL TRANSACTIONS AS ON 31-3-2010

                                           

NAME	NO.OF ACCOUNTS	AMOUNT[IN MILLIONS]
SAVINGS BANK	88564993	264571.0
R.D	75309193	628194.8
TD	9336144	275712.5
MIS	25061189	2016921.3
NSS	492651	44528.6
PPF	2256033	260949.6
SENIOR CITIZEN SB	1182504	249888.0
CTD	345962	191.9
F.D	6627	2112
NREGA	22699010

SAVINGS CERTIFICATES

                        NSC VIII ---  [AMOUNT]   --     547765.3

                        KVP  --    --   [AMOUNT] --  -  1539364.6

                                                                                              TOTAL --   5828329.6

NAME	REVENUE	COST OF SERVICE	[-][+]
POST CORD	0.50	6.50	[-] 6.00
PRINTED CORD	6.00	6.61	[-] 0.61
C.CORD	10.00	4.43	[+]5.57
INLAND LETTER	2.50	6.49	[-]3.99
LETTER	9.09	7.18	[+]1.91
REGD. NEWS PAPER	0.39	8.42	[-]8.03
n   --. BUNDLE	0.99	14.92	[-]8.03
BOOK POST	8.34	8.58	[-]0.24
PRINTED BOOKS	3.88	15.65	[-]11.77
OTHER PERIODICALS	12.73	14.48	[-]1.75
ACKNOWLEDGEMENT	3.00	6.00	[-]3.00
PARCEL	57.30	70.77	[-]13.47
REGD.LETTER	17.00	33.55	[-]16.55
INS.	50.31	44.37	[+]5.06
SPEED POST	36.00	42.04	[-]6.04
VPP	4.38	23.01	[-]18.61
FOREIGN MAIL	41.23	25.01	[+]16.22
TMO	28.14	71.54	[-]41.40
IPO	3.00	24.05	[-]21.05
M.O.	26.14	56.16	[-]30.02

REVENUE & EXPENDITURE AT A GLANCE

YEAR	REVENUE	EXPENDITURE	[-],[+]
2005-06	50234.88	53224.39	[-]2989.51
2007-08	64291.52	67791.20	[-]2499.68
2008-09	58623.26	94554.14	[-]35830.88
2009-10	62667.01	129080.05	[-]66413.04

ANALYSIS OF THE SERVICE AND REASONS FOR THE LOSS

1.TARIFF IS BEING FIXED BY THE GOVT. BUT NOT BY THE DEPARTMENT.

2. DEPART HAS NO SAY IN FIXING THE TARIFF

3.DEPARTMENT IS GETTING ONLY COMMISSION FOR FINANCIAL TRANSACTIONS FROM FINANCE MINISTRY

4.IF 2% MARGIN INTEREST IS PAID BY THE FINANCE MINISTRY ON THE AMOUNT ENTIRE LOSS WILL BE WIPED OUT AND DEPARTMENT WILL BE WITH HUGE PROFITS.

EXAMPLE:  2009-10  FOR Rs.5828329.60 commission paid is   31327.68.

IF INTEREST IS PAID 2% MARGIN WILL BE :1165661.00.

THEN DEPT. WILL BE IN SURPLUS OF :1099248.00.

EVEN TARIFF IS LOW ON MAILS DEPART MENT WILL BE IN PROFIT.

THE REASON FOR THE LOSS IS NOT MAILS GOING DOWN.

 IF MAIL TRAFIC  INCREASES  LOSS ALSO WILL INCREASE.