Department of posts slashes Speed Post tariffs
New Delhi: The department of posts has revised tariffs for Speed Post service. Now sending packets within a city has become cheaper by 40 per cent while couriering parcels over long distance has become more expensive.

The DoP has reduced rates of local Speed Post for packets weighing less than 50 g by 40 per cent. A 50-g packet can now be sent anywhere within a city for Rs12 instead of Rs20 being charged at present. The move is aimed at capturing market share from private courier companies, which are already offering local delivery at around Rs10 for a 50-g packet. The move comes even as DoP is facing a budget deficit of nearly Rs1,400 crore.

Officials said the tariff reduction will not have any impact on DoP's revenues as volumes are expected to grow.

For long distance Speed Post service the rates have been raised for higher weight categories. A 500-g packet to be sent over 2,000 km will now cost Rs80 instead of Rs70 at present. Similarly, a 500-g packet sent to a destination that is over 1,000 km away will now cost Rs70 instead of Rs60. The department blamed the increase in transportation costs for the hike in long distance Speed Post tariffs. The revised tariffs will come into effect from today.
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Railways to hike freight charges
New Delhi: With the Railways deciding to levy a two per cent surcharge on freight as development charge effective from July 1 freight rates are expected to go up. Additionally, the Railways has also decided to levy a terminal handling charge of Rs10 per tonne per terminal from July 1.

The terminal charges will be levied for bulk and loose traffic on terminals and sidings owned by the Railways only - so the terminals owned by customers would not attract any surcharge.

Both load and unloading of goods at terminals would attract Rs10 surcharge each.

These charges will be levied on loading and unloading terminals independently and separately on the basis of chargeable weight at the time of issue of railway receipt said the Railways in an order.

If a customer books 3,600 tonnes of coal from a private siding to a goods shed, the firm would have to pay Rs36,000 as terminal charge. But if the same traffic is to be moved between two goods sheds owned by the Railways, the customer would have to pay Rs36,000 as terminal charge for each terminal - totalling Rs72,000. However, if the traffic moves between two private sidings, no terminal charge will be levied.

With the Railways aiming to load 785 million tonnes of goods in 2007-08, it could earn over Rs1,400 crore through these charges, said Ministry officials.

While levying the two per cent surcharge, the Railways has spared the companies with whom it has already entered into long-term contracts - allowing them to use parcel and luggage vans on lease till the contract period ends.
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India's April industrial output up 7.4 per cent
New Delhi: India's production at six key industries, which account for a quarter of the nation's industrial production, rose 7.4 per cent in April from a year earlier, the government said in New Delhi on Monday.

The index for six key industries rose to 225.5 in April from 210 a year earlier. Industrial production represents a quarter of India's $854 billion economy.
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Government to review petrol, diesel prices in mid-July
New Delhi: Government may review the prices of petrol and diesel, in mid July this year as these have not been changed since February despite a spurt in international oil prices.

The review will throw the exact quantum of under-realisation of petrol, diesel, domestic cooking gas (LPG) and kerosene for the full fiscal and how this has to be borne by all the stakeholders.

At least one-third of the projected Rs50,400 crore revenue loss on fuel sale will be borne by upstream firms like ONGC, while the Government will also share part of the burden by way of compensating fuel retailers through issue of oil bonds.

The rest will have to be split between the retailers and the consumers, the official said.

International oil prices have risen 10-12 per cent since mid-February when petrol prices were slashed by Rs2 a litre and diesel by Re one per litre.

The government officials said once the consolidated view is taken it would go to the Cabinet, in the second or third week of July, for a decision.

The Cabinet will decide on the quantum of bonds Finance Ministry will issue to Indian Oil, Bharat Petroleum and Hindustan Petroleum as also deliberate the need for raising petrol and diesel prices.
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