India Post to monetise land assets, expand services for profitability: Scindia

The Department of Posts is set for a major transformation aimed at turning its vast network of 1.6 lakh post offices into a profit-generating entity, Communications Minister Jyotiraditya Scindia said in a recent interview. The plan includes monetising prime real estate, introducing new services, and restructuring operations.

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Scindia revealed that the department is compiling a comprehensive inventory of land assets, verifying ownership, and identifying commercially viable parcels for leasing, while ensuring postal operations continue. “We must sweat our assets. If you have a large piece of land, you can have the post office on the ground and lease out the rest,” he explained.

India Post, currently running at an annual loss with Rs 27,000 crore in expenses and Rs 12,000 crore in revenue, is being reorganised into six strategic business units: mail, international mail, parcels, Postal Life Insurance, savings bank services, and citizen-centric services. Each unit will operate with its own profit and loss statement, supported by a digital overhaul led by a new chief technology officer and team.

Scindia said the government is investing heavily in modernisation, with the goal of making the department financially sustainable within five years. The upgraded system, called IT 2.0 will also enable India Post to evolve into a full-fledged logistics platform.

New services are central to the revamp. India Post is expanding into Aadhaar enrolment, passport facilitation, and mutual fund distribution, while boosting express parcel delivery and mail efficiency through private and government partnerships.

Highlighting broader infrastructure development, Scindia noted that Rs 5 lakh crore is being invested in the North-East, with an additional Rs 4.2 lakh crore pledged by private firms. He added that India’s 5G rollout now covers 99.6% of districts, making it the fastest in the world.

BSNL, under government reform, has turned profitable after 18 years, posting profits in two consecutive quarters and reducing annual losses by 55%. The telecom PSU is also preparing to play a key role in India’s 6G rollout.