Steep hike in postal tariffs

NEW DELHI, Aug 27 (PTI) — The government today announced a steep hike up to 150 per cent in postal charges with effect from August 31 to mop up an additional Rs 180 crore during the current financial year.

Ordinary postcards and inland letters have been spared from the hike which involves letters, competition cards, money order forms, parcels and registration, an official release said here.

The tariff of post covers, competition postcards and letter cards have gone up by 50 per cent each, while parcel and insurance charges have been increased by 25 per cent and registration charges by 20 per cent, following an announcement made by the Finance Minister while presenting the 1998-99 Budget.

As per the revised rates, competition postcard and letters weighing up to 20 gram would cost Rs three each. Letter cards, on the other hand, would cost Rs 1.50. The maximum increase in tariff is on money order forms which would now cost 25 paise instead of 10 paise each.

The increased postal tariff would yield an additional annual revenue of Rs 270 crore, leaving behind an uncovered postal deficit of Rs 695 crore.

Rates for acknowledgement cards has been increased by 100 per cent. As a result, the one rupee acknowledgement form will now cost Rs two.

While letters weighing up to 20 gm will be charged at a rate of Rs three. Every additional 20 gm will also be charged at the rate of Rs three instead of the present rate of Rs two, the release said.

Parcels up to first 500 gm and fractions thereof would be charged at a rate of Rs 10 instead of Rs eight. Every additional 500 gm or fraction thereof in excess of 500 gm be charged Rs 10 instead of the present rate of Rs eight.

Registration fee for letters has been hiked from Rs 10 to Rs 12, while insurance charges have been hiked from Rs eight to Rs 10 for articles whose insurance value does not exceed Rs 200. For every additional Rs 100 or fraction thereof in excess of Rs 200, the charges would be Rs six against Rs four.

Postal articles cleared on August 31 from letter boxes in the first clearance would not be affected by the hike, the release said.