- As the popular saying goes, we must move in sync with the fast-changing times. And the modern-day world is largely driven by cutting-edge technologies, adding to the diversity of revenue-generating avenues for the government authorities. We are familiar with disinvestment, private investment, public-private partnership, and the government’s push to further the infrastructure needs to ensure the economy is on the right track. As you are aware, the Indian government by default owns huge tracts of land and buildings throughout the country, serving the countrymen variously. Any number of government buildings house departments earmarked to ensure socio-economic measures reach out to the deserving, as well as carry out day-to-day administration.
PC: Logistics Manager
- Since the economy is growing manifold, every government department must explore ways and means to monetize available resources. Over the years, several Central Government departments have made earnest efforts at monetizing available resources within their respective departments in commensurate with the changing times. The recent announcement by India Post on the matter is the right move. As you know, it’s a bad time to be in the mail business. Denmark is removing all letter boxes because the volume of personal mail has fallen 90% since 2000. The UK’s 500-year-old Royal Mail was sold to a Czech billionaire last year, because it’s not popular anymore. From a peak of 20bn letters per year in 2004, it came down to 7bn in 2024.
PC: BBC
- The US Postal Service lost $9bn last year, up from $6.5bn in 2023. With 1.65L post offices, India Post is the largest mail carrier in the world, and its losses aren’t insignificant either. But scrapping it is not an option as 90% of post offices serve rural locations, and remote or tribal areas. The government has been trying to boost revenue by turning India Post into a logistics firm – delivering Amazon packages in remote areas, for instance. But monetizing the larger post offices, especially the 15,823 in urban areas, could also improve finances. As the union communications minister recently mentioned, having the post office on the ground floor and building the whole building, and leasing out space, makes eminent sense.
PC: ThePrint
It’s a timely idea, not only for the department but also for the private businesses and institutions scouting for leasable premises in India’s fast-growing cities. India Post is already examining its paperwork to identify post offices that could be developed first, and other government departments should follow its lead. GOI is the largest landowner in India, possessing some 15,500 sq km, more than 10 times the area of Delhi. Indian Railways alone owns at least 4,900 sq km of land. The defence ministry reportedly owns about 50% more. And there are another dozen departments with large landholdings. Niti Aayog points out that India’s public sector is sitting on an inventory of underutilized land assets. It’s time to monetize the same for better returns.
