As the private sector continues to lay off people to cut costs amid economic slowdown, the government too seems to have frozen fresh recruitment at least in the department of posts.
In view of financial constraints, government has taken a policy decision to open new post offices, wherever necessary, by redeployment of existing employees and within the available resources with the department, minister for communication and IT A Raja said in the Lok Sabha during Question Hour.
The postal department has incurred a loss of Rs 120 crore (Rs 1.2 billion) in 2005-06 and Rs 124 crore (Rs 1.24 billion) in 2006-07, the minister said, adding that the department has initiated a slew of extra activities like sale of gold coins, railway tickets, foreign exchange and UPSC forms by using the untilised land available with it to earn extra revenues.
The government has also constituted a group of secretaries to recommend that how the land available can be used to reduce the gap in expenditure and revenues of the postal department.
For the six lakh villages, there are 1,55,000 post offices and with a view to cover more and more villages the department is bringing a cluster of villages under a particular post office.
Meanwhile, the department has submitted a proposal with the finance ministry for opening 3,000 new post offices in rural areas, Raja said.
The department has also entered into an agreement with the State Bank of India [Get Quote] and ICICI Bank [Get Quote] to open their counters in various villages by employing the staff of local post offices on a commission basis.
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