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Postal dept's move on 300 gm weight limit questioned

Our Bureau

New Delhi , July 12

The Competition Commission of India (CCI) has asked the Department of Posts to explain the basis on which it proposes to disallow all private courier companies to carry any letter weighing below 300 grams.

"We have discussed the issue with the Department of Posts. We have asked them the basis on which they have fixed the 300-gm limit," said Mr Vinod Dhal, Member and Acting Chairman, CCI, while speaking on the sidelines of a Confederation of Indian Industry conference.

He added that the Commission has asked the Department of Posts whether the limit can be further lowered to ensure that there is a competition in a larger segment.

Moreover, the CCI has also raised some issue regarding the Shipping Trade Practices Act with the Shipping Ministry. The Act proposes to bring all freight forwarders, warehousing companies, container operators, amongst others within its ambit.

"We have asked whether such strong regulation is necessary," said Mr Dhal, referring to a clause that proposes cancelling their registration if they violate certain rules.

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