Punjab Postal service will be tying up with banks and insurance companies to sell their products through the post’s network to earn revenue of over Rs. 200 crore in 2008-09. Chief Postmaster General Prithvi Raj Kumar said, “We are taking several steps this year in order to attain total revenue of over Rs. 200 crore which will allow us to reach a break even point from our operations in Punjab.”
Revealing the initiatives to be taken to improve the earnings from postal services, he said, “The department is focusing on entering into agreement with banks, insurance companies and mutual funds to sell their products through its network in a bid to jack up its income. In addition to it, the department has also tied up with Indian Railways for reservation and selling of tickets through its branches, expected to start within two months,” he said.
Kumar added that the postal department in Punjab earns back only 82 per cent revenue of its total expenditure incurred on postal operations, “We are still not able to recover 18 per cent of our expenditure from operations in Punjab. Last year postal department reported a deficit of Rs. 34 crore with total revenue of Rs. 155 crore.”
According to Kumar, postal departments of Maharashtra and Haryana are operating above the break even point at 103 per cent each and after the agreements Punjab will be the third state to break even its revenue.