Scindia pushes for investment to transform India Post into a profitable logistics giant

New Delhi, Dec 29: Union Communications Minister Jyotiraditya Scindia has appealed to Finance Minister Nirmala Sitharaman for capital funds to help the Department of Posts (DoP) achieve profitability by 2029. According to official sources, the Department of Posts is working on a comprehensive plan to transform itself into a logistics powerhouse.

Scindia met with Sitharaman on Friday to discuss India Post’s future trajectory and presented the department’s capital expenditure demands. The goal is to position India Post as a profit-making logistics company, with a focus on improving customer acquisition, retention, and operational efficiency.

An official stated that the Department of Posts is currently engaged in a Business Process Re-engineering (BPR) exercise, which will benefit greatly from the proposed funding. The BPR initiative will focus on launching more attractive services for both business-to-business (B2B) and business-to-consumer (B2C) segments.

The capital expenditure requested will primarily go toward infrastructure development, renovation of post offices, and improvement of staff housing facilities across the country. Additionally, Scindia emphasized that automation of processes is key to making India Post more efficient and future-ready.

This marks Scindia’s second term as Communications Minister. Having previously led Project Arrow for the modernization of the postal department in 2007 under the UPA government, Scindia has now tasked India Post to adopt international best practices and come up with innovative strategies for growth. During his recent meeting with Sitharaman, Scindia expressed confidence that the department would be globally competitive by 2028-29 and would increase its market share across various verticals, particularly in mail and parcel services.