Ministry Of Communication & Technology

Department of Posts

1. IT Modernization Project

The Cabinet Committee on Economic Affairs (CCEA) approved IT Modernization

Project of Department of Posts in November 2012, with a total out lay of Rs 4909 Cr.
The key objectives of the project are as under.

i. Modernization and computerization of all Post Offices in the Country.

ii. Establishment of IT Infrastructure, Viz., Data Centre, Disaster Recovery
Centre and Wide Area Network (WAN) based networking of the Departmental
post offices, mail offices and administrative units;
iii. Development of software applications covering all operations of the
Department viz., Counter Operations, Mail Operations, Postal Banking,
Insurance, Finance and HR; and
iv. Deployment of Rural Information Communication Technology (Rural ICT)
solution in all the 1, 30,000 rural Branch Post Offices in the country by
supplying hardware and providing networking to them.

The entire Project is being implemented by the Department through 8 different

segments. Details of each segment and the present status are furnished below.

Present Status of the IT Modernization Project as on 28-02-2017

Sl Name of the segment & its Present position

No scope
.
1 ChangeManagement(CM): Activities by Vendor completed. Training
Preparing the workforce for the activities are in progress by Department on its
complete change in own.
Departments’ working after
implementation of IT Project.
2 Data Centre Facility (DCF): Data Centre is operational from 3rd April 2013
Hosting Primary Data centre and at Navi Mumbai.
building Disaster Recovery DRC has been powered on at Mysore on 15th
centre for the DoP May, 2015.

3 Financial Services Integrator So far 23201POs for CBS and 25406 Post
(FSI): Implementation of offices for CIS (PLI) have been migrated.
solutions for Core Banking and ATM Services- installed at 976 locations.
Core Insurance in all Post ATMs are inter-operable w.e.f. 31-12-2016.
Offices.
Providing multiple delivery
 channels- internet banking,
mobile banking, ATM and
Interactive Voice Response (IVR)
and SMS etc.
4 Network Integrator (NI): 28260locations have been net worked on a
Providing connectivity for each single Wide Area Network (WAN) and
departmental post office location connected to Data Centre.
in order to ensure uninterrupted
network connectivity through one
single WAN
5 Core System Integrator (CSI): Implementation started.E-mail roll out of staff
Implementation of the solutions and officers completed. Deployment of
for Mail Operation, Retail, logistic Antivirus and Active Directory as part of Wave
Post, Philately, Finance and 1 roll out is in progress. Pilot roll out
Accounts & Human Resources completed in Mysore Division of Karnataka
and integration with other SIs. Circle. Further roll out in Pune in Maharashtra
circle completed on 23-1-17.
6 Rural Hardware (RH): Providing Supply of RH handheld devices is under
& connectivity, hardware & solar progress. So far 27205 Main Computing hand
7 power panels to Branch Post held devices have been dispatched to Branch
Offices in rural areas. Offices of Six pilot circle viz. Assam, Bihar,
Rural System Integrator (RSI): Karnataka, Maharashtra, Rajasthan and UP
Implementation of the solution for and in Jharkhand, Telangana & Chhattisgarh
integrating all the FSI/CSI in Phase- I.
applications to the Branch Post Roll out of RICT Solution is under progress.
Offices. So far 14651 Rural Branch Post Offices have
been rolled out as on 28-02-17 in six pilot
circles viz., Assam, Bihar, Karnataka,
Maharashtra, Rajasthan and Uttar Pradesh
and in Jharkhand, Telangana & Chhattisgarh
in Phase-I.
8 Mail Operation Hardware Procurement of Mail Operations Hardware
(MOH): Providing hardware to through DGS&D RC is in progress. Supply of
Mail Offices and handheld Desk top computers completed. Supply of
devices to Postmen. UPS, weighing scale and Gen sets is in
progress and in its final stage. Procurement of
Tag Printers, Barcode Scanners and Postmen
handheld devices is in progress.

Comparative statement about the progress made in the IT Modernization Project till
May-2014 in February-2017 is as under.

Sl Segment Position in May, 2014 Position in February-2017

No
1 Change Implementation started All Workshops and surveys
Management on 15-10-2012. completed. Vendor activities are
(CM) Workshops and surveys completed. It is an ongoing exercise
partially completed viz., with the implementation of various
2 cycles (out of 4) of other streams of the Project. Training
change management activities are in progress by
workshops (CMW), Department on its own.
Cycle 1 (out of 4) of
change readiness survey
and Cycle 1 (out of 4)
stakeholder
management completed.
2 Data Centre Implementation started Disaster Recovery Centre at Mysore
Facilities on 28-12-12. was also powered on from 15-05-15.
(DCF) Primary Data Centre
started functioning
on 03-04-13.
3 Financial Implementation started POS migrated to
Services on 28.09.12. CBS----- 23201
Integrator POS migrated to PLI ------ 25406
(FSI) CBS---- 236 ATMs installed ----- 970
PLI ----- 389 ATMs are interoperable wef 31-12-16
ATMs installed ---- 04 CPC started functioning in all 22
circles.
4 Network Implementation started 28260 locations have been
Integrator (NI) on networked under single wide area
28-09-12. network (WAN) and connected to
No. of locations Data Centre.
networked 21380
5 Core System Implementation started Implementation is in progress.E-mail
Integrator on 15.04.13. roll out of staff and officers
(CSI) Installation and completed. Deployment of Antivirus
commissioning of and Active Directory as part of Wave
Central Hardware 1 roll out is in progress. Pilot roll out
completed. Detail design completed in Mysore Division of
documents completed. Karnataka Circle. Roll out completed
Testing of common in Pune in Maharashtra circle on 23-
infrastructure solution 1-17.
completed.
6 Rural System Contract signed with After tendering for the 3rd time, RH
Integrator selected bidder Tender finalized. Contract with Rural
& (RSI) on 28-02-13. Hardware Vendor has been entered
into on 24-11-14.
7 Rural RSI project has been kicked off on
 Hardware For Rural Hardware, 05-05-15 and RH Project kicked off
(RH) Earlier two bids were on 19-06-15.
annulled. Once on 16- Both the RH and RSI project under
05-13 due to failure on RICT are to go hand in hand.
the part of the bidder to
furnish Performance Supply of RH devices and roll out of
Bank Guarantee and RICT solution is under progress. So
second time on 23-11-13 far 27205 Main Computing hand held
due to lack of devices have been dispatched to
competition.Fresh RFP Branch Offices of Six pilot circle viz.
was issued on 04-02-14. Assam, Bihar, Karnataka,
Maharashtra, Rajasthan and UP and
in Jharkhand, Telangana &
Chhattisgarh in Phase- I.

Roll out of RICT Solution is under

progress. So far 14651 Rural Branch
Post Offices have been rolled out as
on 28-02-17 in six pilot circles viz.,
Assam, Bihar, Karnataka,
Maharashtra, Rajasthan and Uttar
Pradesh and in Jharkhand,
Telangana & Chhattisgarh in Phase-
I.
8 Mail RFP was issued on Procurement of Mail Operations
Operations 17.05.13. Hardware through DGS&D RC is in
Hardware Letter of Intent was progress. Supply of Desk top
(MOH) issued on 03-02-14 to computers completed. Supply of
M/S HCL Info systems UPS, weighing scale and Gen sets is
Ltd. Contract was not in progress and in its final stage.
executed. Procurement of Tag Printers,
Barcode Scanners and Postmen
handheld devices is in progress.

Budgetary allocations and expenditure made in IT Modernization Project are as

under.
(Amount is in Crores of Rupees)

Year Budgetary Expenditure % of expenditure to the

allocation made Budgetary allocation.
 2011-12 536.59 91.02 16.96 %
2012-13 516.00 23.18 4.49 %
2013-14 532.21 253.95 47.71%
2014-15 506.39 88.84 17.54 %
2015-16 276.40 307.19 111.13
2016-17 176.61 165.33 93.61 %
(till 28-02-17)

The IT Modernization Project implementation in Department of Posts is a PAN India

Project and on completion of its implementation, the following are be the key
benefits to customers.

i. Improved customer satisfaction due to faster and more reliable services in mails,
banking, insurance and money remittance/ transfer operations.
ii. Transparency in financial services by introduction of core banking and core
insurance solution
iii. Multiple channels of access to the customers through Post Office counters,
internet, mobiles, call centers and ATMs etc.
iv. Better financial inclusion for the common man in the rural and semi-urban
locations through mobile remittances, mobile banking, mobile insurance etc.
v. Effective and transparent delivery of the social security and employment
guarantee schemes of the Government.

2. Core Banking Solution

The Core Banking Solution (CBS) is part of the India Post IT Modernization project that
aims to bring in various IT solutions with the required IT infrastructure to the Post
Offices. Core Banking Solution (CBS) for providing ‘Anytime Anywhere Banking’ has
been rolled out in 23201 Post Offices, covering more than 34.74 Crore Post Office
Savings Bank accounts, whereas as on 31.05.2014 CBS was rolled out only in 236 Post
Offices. 976 Post Office ATMs have been installed across the country, whereas as on
31.05.2014 only 4 ATMs were installed.

3. Core Insurance Solution

In order to provide better service to clientele of PLI/RPLI a complete technology based

solution for insurance services was started in 2014. This system will result in improved
after sales service, providing a fillip to efforts to provide greater financial security to
eligible population by increasing the number of insurants in PLI/RPLI. Core Insurance
Solution has been rolled out in 25406 Post Offices.

4. India Post Payments Bank (IPPB)

Public Investment Board (PIB) has recommended the proposal of setting up of India
Post Payment Bank (IPPB) with a total investment of Rs.800Cr. over five years
 commencing from 2016-17. The India Post Payments Bank (IPPB) has launched two
branches in Raipur and Ranchi on 30/01/2017 which were inaugurated by Hon’ble
Finance Minister and Hon’ble Minister of State (Communications), through video
conference.
IPPB aims to catalyze financial inclusion in India, by ensuring that everyone has
equal access to financial services, no matter who they are, what they earn and where
they live. IPPB will take basic banking to the un-banked and the under-banked across
all cross-sections of society. Beneficiaries will be able to access Direct Benefit Transfer
(DBT) payments like MNREGA wages, Pensions, Scholarships, etc. They will be able to
pay utility bills, send or receive remittances instantly and economically from the same
IPPB account that would also allow them to access loans and insurances from leading
banks and insurance companies.

5. e-Commerce initiatives
 The Department has started augmenting the parcel booking and transmission
capacities all over the country in order to tap the growing e-Commerce business,
which has resulted in a substantial growth in the recent years.
 Department of Posts has rationalized its offering in Parcel segment and is
positioning Speed Post as a premium product for eCommerce delivery solution.
 Tie-ups have been made with more than 1000 eCommerce players viz. Naaptol,
Amazon.in, Flipkart.com, Myntra.com, Snapdeal.com, StarCJ etc. to provide
distribution and Cash on Delivery services. During the year 2015-16 total Cash
on Delivery collection till December, 2016 is Rs.1900 Cr.
 A pilot started with M/s Snapdeal.com (Jasper Infotech Pvt. Ltd.) in Varanasi
w.e.f. 25.12.2014 to provide a platform for online sale of merchandise of
Varanasi weavers so as to extend the benefit of e-Commerce to the small
weavers etc.
 Department has introduced an automated Short Messaging Service (SMS) on
the sender’s and addressee’s mobile (captured at the time of booking) intimating
the arrival of article in delivery Post Offices and delivery status.
 The initiative to deliver the holy water from the Ganga at the doorstep of every
Indian across the length and breadth of the country using the vast postal network
has been launched. Post offices have also started selling pulses at subsidized
rates to consumers.

6. Project Arrow
‘Project Arrow’, is an initiative to transform Department of Posts into a vibrant and
responsive organization and to make a visible and positive difference to quality and
efficiency of service to the customer. It entails comprehensive improvement of the ‘core
 operations’ of the post offices as well as modernized ambience under ‘Look & Feel’ silo
of the project.

7. Mail Network Optimization Project (MNOP)

As part of Mail Network Optimization Project, the online Track and Trace system for
Speed Post and Registered mail has been developed to provide complete end-to-end
tracking information on the website (www.indiapost.gov.in). Online tracking facility for
parcels has also been introduced.

8. Mobile Money Transfer Service

Mobile Money Transfer is a service that enables instant money transfer from one place
to another using mobile, through Indian post offices. The consumer just needs to have a
mobile phone while the actual transmission of the money is initiated by the Postal
Assistant, using his/her special handset. This service is a boon for those sections of our
society who regularly remit money to their homes at faraway places and who have no
access to any other financial instrument like bank account etc. except mobile phones.

9. India Post Help Centre “1924”

In wake of the initiatives taken up by Hon’ble Prime Minister to bring

transparency and accountability in the Government, Department of Posts has
established “India Post Help Centre” on 12th September, 2016 which can be reached
through a Toll Free Number, 1924. This Helpline Number aims to assist the general
public in the following manner:-

 Redressal of Public Grievances.

 Dissemination of information regarding various initiatives, activities, schemes,
programmes and projects undertaken.
 Feedback on the perception of the Department’s performance.

10. Mobile Applications through Android

India Post's first Android Application - Post Info, is now ready for download. Centre for
Excellence in Postal Technology (CEPT), Mysore has designed and developed this
application. The basic functionalities provided by this application are tracking of
 goods, search any post office’s address or PIN anywhere in the country, postage
calculator, insurance premium calculator, sending electronic Money Order (eMO),
Instant Money Order (IMO), etc., buy Philatelic products, Gangajal, etc.

11. ePost

ePost is unregistered hybrid mail provided for both retail as well as corporate customers
providing electronic transmission of messages which may include text messages,
scanned images, pictures etc and their delivery in hard copies at the destination through
postman/delivery staff. Presently, ePost booking facility is available in more than 13000
post offices and are physically delivered through a network of more than 1.54 lakh Post
Offices across India.

12. KisanVikasPatras (KVP)

KVP which was discontinued with effect from 1st December 2011, was relaunched on
18th November 2014. A total of 25363578 KVPs were sold during 2015-16 with a
deposit of Rs. 29825 crores and 3772195 KVPs were sold during 2016-17 upto Nov.
2016 with an investment of Rs. 9488.48 crores.

13. Jan Suraksha Scheme

Jan Suraksha Schemes viz. Pradhan Mantri Suraksha BimaYojana (PMSBY) and
Pradhan MantriJeevanJyotiBimaYojana (PMJJBY) were launched w.e.f. 07.09.2015 in
all CBS Post Offices. These schemes are available to all Post Office Savings Account
holders.

14. SukanyaSamridhi Accounts

SukanyaSamridhi Account, a new Small Savings Scheme for the welfare of girl child,
was launched on 22nd January 2015. Under the scheme, a legal / natural guardian can
open only one account in the name of one girl child and maximum two accounts in the
name of two different girl children up to 10 years from date of birth of the girl child. Till
date, about 64 lakhs accounts have been opened with a total deposit of Rs. 8000
crores.

15. Production and Fulfillment Center

A Production and Fulfillment Center has been set up at DakBhawan, New Delhi to
increase India Post’s revenue from Philately as a business stream for online sale of
Philatelic products through e-postoffice, Shopclues and Snapdeal.
16. Swachh Bharat Mission
Under the Swachh Bharat Mission, special cleanliness drive has been undertaken in all
Postal establishments, which includes weeding out / disposal of obsolete records /
furniture / e-waste, etc., cleaning of surrounding of Post Offices, Postal Colonies, etc.,
tree plantation, construction of common toilets and lady toilets in Post Offices, improving
Look and Feel of Post Offices, etc.

17. Social Media

Official Facebook and Twitter page of the Department has been created to publicize and
spread awareness on major initiatives of the Department. The comments and
complaints on these platforms are reviewed and prompt actions are taken. The
Facebook page has generated more than 1 lakh likes and twitter page has more than
33000 followers till date. Twitter Seva was inaugurated by Hon’ble Minister of State for
Communications (I/C) on 2nd August 2016. The social media complaints are time bound
and are replied within 24 hours. Percentage of closure of complaints on Twitter Seva
has been around 100%. Till 30th January 2017, the Department has resolved 17,825
complaints lodged on Twitter.

18. Philately
i. An android mobile application was launched by Philately Division for purchase of
philatelic products directly online through android phones from e-post office. e-
post office is an e-commerce portal for online purchase of Philatelic products and
other major products sold by Department of Posts. This app was uploaded
successfully on 02/11/2015 on Google Play Store.
ii. An agreement with e-commerce giants viz. snapdeal&shopclues was entered on
04.08.2014 and 07.10 2015 respectively for making philatelic items available for
sale on more e-commerce portals.
iii. A Production and Fulfillment Center was set up in Feb 2017 in Department of
Posts to cater the need of philatelists across the country &to facilitate e-post
office & e-commerce partners viz. snapdeal&shopclues. Customer grievances
are solved telephonically and through emails.
iv. Department has also introduced a new product called “Customized My Stamp” in
Dec 2015. Vide Customized stamp corporate, organizations and institutions can
get their logo printed on select my stamp themed sheets, alongside stamp may
opt for logo, images of their organization /institute, photograph(s) of their
employee(s).
v. Crowd sourcing of Stamp-Design.
The Department has been organizing Stamp Design Competitions thrice a year
since 2015 on the occasions of Republic Day, Independence Day and Children’s
Day. These competitions have been eliciting huge response from people all over
the country. Last such competition was held on the theme ‘Nature India’ on the
 occasion of Republic Day 2017. The prize winning entries are considered for use
as design on stamps and other Philatelic Material
vi. New definitive postage stamp series “Makers of India & Yoga” has been
introduced in place of previous series “Builders of Modern India”. A total of 28
stamps have been approved in “Makers of India & Yoga” series.

Achievements
In the year 2014-15 a total of 36 commemorative postage stamps were released, in the
year 2015-16 a total of 49commemorative postage stamps were released and in the
year 2016-17 (upto Feb 2017) a total of 128 commemorative postage stamps were
released .

Revenue
Revenue generated by Philately Division on account of sale of philatelic stamps, my
stamps & philatelic ancillaries is furnished below:

Sl No. Financial Year Revenue

(in crore
rupees)
1 2014-15 32.85
2 2015-16 39.87
3 2016-17 (up to 47.34
28.02.2017)

19. IT Modernization Project

The Cabinet Committee on Economic Affairs (CCEA) approved IT Modernization

Project of Department of Posts in November 2012, with a total out lay of Rs 4909 Cr.
The key objectives of the project are as under.

v. Modernization and computerization of all Post Offices in the Country.

vi. Establishment of IT Infrastructure, Viz., Data Centre, Disaster Recovery
Centre and Wide Area Network (WAN) based networking of the Departmental
post offices, mail offices and administrative units;
vii. Development of software applications covering all operations of the
Department viz., Counter Operations, Mail Operations, Postal Banking,
Insurance, Finance and HR; and
viii. Deployment of Rural Information Communication Technology (Rural ICT)
solution in all the 1, 30,000 rural Branch Post Offices in the country by
supplying hardware and providing networking to them.

The entire Project is being implemented by the Department through 8 different

segments. Details of each segment and the present status are furnished below.
 Present Status of the IT Modernization Project as on 28-02-2017

Sl Name of the segment & its Present position

No scope
.
1 Change Management(CM): Activities by Vendor completed. Training
Preparing the workforce for the activities are in progress by Department on its
complete change in own.
Departments’ working after
implementation of IT Project.
2 Data Centre Facility (DCF): Data Centre is operational from 3rd April 2013
Hosting Primary Data centre and at Navi Mumbai.
building Disaster Recovery DRC has been powered on at Mysore on 15th
centre for the DoP May, 2015.

3 Financial Services Integrator So far 23201 POs for CBS and 25406 Post
(FSI): Implementation of offices for CIS (PLI) have been migrated.
solutions for Core Banking and ATM Services- installed at 976 locations.
Core Insurance in all Post ATMs are inter-operable w.e.f. 31-12-2016.
Offices.
Providing multiple delivery
channels- internet banking,
mobile banking, ATM and
Interactive Voice Response (IVR)
and SMS etc.
4 Network Integrator (NI): 28260 locations have been net worked on a
Providing connectivity for each single Wide Area Network (WAN) and
departmental post office location connected to Data Centre.
in order to ensure uninterrupted
network connectivity through one
single WAN
5 Core System Integrator (CSI): Implementation started. E-mail roll out of staff
Implementation of the solutions and officers completed. Deployment of
for Mail Operation, Retail, logistic Antivirus and Active Directory as part of Wave
Post, Philately, Finance and 1 roll out is in progress. Pilot roll out
Accounts & Human Resources completed in Mysore Division of Karnataka
and integration with other SIs. Circle. Further roll out in Pune in Maharashtra
circle completed on 23-1-17.
6 Rural Hardware (RH): Providing
Supply of RH handheld devices is under
& connectivity, hardware & solar
progress. So far 27205 Main Computing hand
7 power panels to Branch Post held devices have been dispatched to Branch
Offices in rural areas. Offices of Six pilot circle viz. Assam, Bihar,
Rural System Integrator (RSI):
Karnataka, Maharashtra, Rajasthan and UP
Implementation of the solution for
and in Jharkhand, Telangana & Chhattisgarh
integrating all the FSI/CSI in Phase- I.
applications to the Branch Post
Roll out of RICT Solution is under progress.
Offices. So far 14651 Rural Branch Post Offices have
been rolled out as on 28-02-17 in six pilot
circles viz., Assam, Bihar, Karnataka,
Maharashtra, Rajasthan and Uttar Pradesh
and in Jharkhand, Telangana & Chhattisgarh
in Phase-I.
8 Mail Operation Hardware Procurement of Mail Operations Hardware
(MOH): Providing hardware to through DGS&D RC is in progress. Supply of
Mail Offices and handheld Desk top computers completed. Supply of
devices to Postmen. UPS, weighing scale and Gen sets is in
progress and in its final stage. Procurement of
Tag Printers, Barcode Scanners and Postmen
handheld devices is in progress.

Comparative statement about the progress made in the IT Modernization Project till
May-2014 in February-2017 is as under.

Sl Segment Position in May, 2014 Position in February-2017

No
1 Change Implementation started All Workshops and surveys
Management on 15-10-2012. completed. Vendor activities are
(CM) Workshops and surveys completed. It is an ongoing exercise
partially completed viz., with the implementation of various
2 cycles (out of 4) of other streams of the Project. Training
change management activities are in progress by
workshops (CMW), Department on its own.
Cycle 1 (out of 4) of
change readiness survey
and Cycle 1 (out of 4)
stakeholder
management completed.
2 Data Centre Implementation started Disaster Recovery Centre at Mysore
Facilities on 28-12-12. was also powered on from 15-05-15.
(DCF) Primary Data Centre
started functioning
on 03-04-13.
3 Financial Implementation started POS migrated to
Services on 28.09.12. CBS----- 23201
Integrator POS migrated to PLI ------ 25406
(FSI) CBS---- 236 ATMs installed ----- 970
PLI ----- 389 ATMs are interoperable wef 31-12-16
ATMs installed ---- 04 CPC started functioning in all 22
circles.
4 Network Implementation started 28260 locations have been
Integrator (NI) on networked under single wide area
28-09-12. network (WAN) and connected to
No. of locations Data Centre.
networked 21380
5 Core System Implementation started Implementation is in progress. E-mail
Integrator on 15.04.13. roll out of staff and officers
(CSI) Installation and completed. Deployment of Antivirus
commissioning of and Active Directory as part of Wave
Central Hardware 1 roll out is in progress. Pilot roll out
completed. Detail design completed in Mysore Division of
documents completed. Karnataka Circle. Roll out completed
Testing of common in Pune in Maharashtra circle on 23-
infrastructure solution 1-17.
completed.
6 Rural System Contract signed with After tendering for the 3rd time, RH
Integrator selected bidder Tender finalized. Contract with Rural
& (RSI) on 28-02-13. Hardware Vendor has been entered
into on 24-11-14.
7 Rural RSI project has been kicked off on
Hardware 05-05-15 and RH Project kicked off
For Rural Hardware,
(RH) on 19-06-15.
Earlier two bids were
Both the RH and RSI project under
annulled. Once on 16-
RICT are to go hand in hand.
05-13 due to failure on
the part of the bidder to
Supply of RH devices and roll out of
furnish Performance
RICT solution is under progress. So
Bank Guarantee and
far 27205 Main Computing hand held
second time on 23-11-13
devices have been dispatched to
due to lack of
Branch Offices of Six pilot circle viz.
competition.Fresh RFP
Assam, Bihar, Karnataka,
was issued on 04-02-14.
Maharashtra, Rajasthan and UP and
in Jharkhand, Telangana &
Chhattisgarh in Phase- I.

Roll out of RICT Solution is under

progress. So far 14651 Rural Branch
Post Offices have been rolled out as
on 28-02-17 in six pilot circles viz.,
 Assam, Bihar, Karnataka,
Maharashtra, Rajasthan and Uttar
Pradesh and in Jharkhand,
Telangana & Chhattisgarh in Phase-
I.

8 Mail RFP was issued on Procurement of Mail Operations

Operations 17.05.13. Hardware through DGS&D RC is in
Hardware Letter of Intent was progress. Supply of Desk top
(MOH) issued on 03-02-14 to computers completed. Supply of
M/S HCL Info systems UPS, weighing scale and Gen sets is
Ltd. Contract was not in progress and in its final stage.
executed. Procurement of Tag Printers,
Barcode Scanners and Postmen
handheld devices is in progress.

Budgetary allocations and expenditure made in IT Modernization Project are as

under.
(Amount is in Crores of Rupees)

Year Budgetary Expenditure % of expenditure to the

allocation made Budgetary allocation.
2011-12 536.59 91.02 16.96 %
2012-13 516.00 23.18 4.49 %
2013-14 532.21 253.95 47.71%
2014-15 506.39 88.84 17.54 %
2015-16 276.40 307.19 111.13
2016-17 176.61 165.33 93.61 %
(till 28-02-17)

The IT Modernization Project implementation in Department of Posts is a PAN India

Project and on completion of its implementation, the following are be the key
benefits to customers.

vi. Improved customer satisfaction due to faster and more reliable services in mails,
banking, insurance and money remittance/ transfer operations.
 vii. Transparency in financial services by introduction of core banking and core
insurance solution
viii. Multiple channels of access to the customers through Post Office counters,
internet, mobiles, call centers and ATMs etc.
ix. Better financial inclusion for the common man in the rural and semi-urban
locations through mobile remittances, mobile banking, mobile insurance etc.
x. Effective and transparent delivery of the social security and employment
guarantee schemes of the Government.

20. Core Banking Solution

The Core Banking Solution (CBS) is part of the India Post IT Modernization project that
aims to bring in various IT solutions with the required IT infrastructure to the Post
Offices. Core Banking Solution (CBS) for providing ‘Anytime Anywhere Banking’ has
been rolled out in 23201 Post Offices, covering more than 34.74 Crore Post Office
Savings Bank accounts, whereas as on 31.05.2014 CBS was rolled out only in 236 Post
Offices. 976 Post Office ATMs have been installed across the country, whereas as on
31.05.2014 only 4 ATMs were installed.

21. Core Insurance Solution

In order to provide better service to clientele of PLI/RPLI a complete technology based

solution for insurance services was started in 2014. This system will result in improved
after sales service, providing a fillip to efforts to provide greater financial security to
eligible population by increasing the number of insurants in PLI/RPLI. Core Insurance
Solution has been rolled out in 25406 Post Offices.

22. India Post Payments Bank (IPPB)

Public Investment Board (PIB) has recommended the proposal of setting up of India
Post Payment Bank (IPPB) with a total investment of Rs.800Cr. over five years
commencing from 2016-17. The India Post Payments Bank (IPPB) has launched two
branches in Raipur and Ranchi on 30/01/2017 which were inaugurated by Hon’ble
Finance Minister and Hon’ble Minister of State (Communications), through video
conference.
IPPB aims to catalyze financial inclusion in India, by ensuring that everyone has
equal access to financial services, no matter who they are, what they earn and where
they live. IPPB will take basic banking to the un-banked and the under-banked across
all cross-sections of society. Beneficiaries will be able to access Direct Benefit Transfer
(DBT) payments like MNREGA wages, Pensions, Scholarships, etc. They will be able to
pay utility bills, send or receive remittances instantly and economically from the same
IPPB account that would also allow them to access loans and insurances from leading
banks and insurance companies.
23. e-Commerce initiatives
 The Department has started augmenting the parcel booking and transmission
capacities all over the country in order to tap the growing e-Commerce business,
which has resulted in a substantial growth in the recent years.
 Department of Posts has rationalized its offering in Parcel segment and is
positioning Speed Post as a premium product for eCommerce delivery solution.
 Tie-ups have been made with more than 1000 eCommerce players viz. Naaptol,
Amazon.in, Flipkart.com, Myntra.com, Snapdeal.com, StarCJ etc. to provide
distribution and Cash on Delivery services. During the year 2015-16 total Cash
on Delivery collection till December, 2016 is Rs.1900 Cr.
 A pilot started with M/s Snapdeal.com (Jasper Infotech Pvt. Ltd.) in Varanasi
w.e.f. 25.12.2014 to provide a platform for online sale of merchandise of
Varanasi weavers so as to extend the benefit of e-Commerce to the small
weavers etc.
 Department has introduced an automated Short Messaging Service (SMS) on
the sender’s and addressee’s mobile (captured at the time of booking) intimating
the arrival of article in delivery Post Offices and delivery status.
 The initiative to deliver the holy water from the Ganga at the doorstep of every
Indian across the length and breadth of the country using the vast postal network
has been launched. Post offices have also started selling pulses at subsidized
rates to consumers.

24. Project Arrow

‘Project Arrow’, is an initiative to transform Department of Posts into a vibrant and
responsive organization and to make a visible and positive difference to quality and
efficiency of service to the customer. It entails comprehensive improvement of the ‘core
operations’ of the post offices as well as modernized ambience under ‘Look & Feel’ silo
of the project.

25. Mail Network Optimization Project (MNOP)

As part of Mail Network Optimization Project, the online Track and Trace system for
Speed Post and Registered mail has been developed to provide complete end-to-end
tracking information on the website (www.indiapost.gov.in). Online tracking facility for
parcels has also been introduced.

26. Mobile Money Transfer Service

 Mobile Money Transfer is a service that enables instant money transfer from one place
to another using mobile, through Indian post offices. The consumer just needs to have a
mobile phone while the actual transmission of the money is initiated by the Postal
Assistant, using his/her special handset. This service is a boon for those sections of our
society who regularly remit money to their homes at faraway places and who have no
access to any other financial instrument like bank account etc. except mobile phones.

27. India Post Help Centre “1924”

In wake of the initiatives taken up by Hon’ble Prime Minister to bring

transparency and accountability in the Government, Department of Posts has
established “India Post Help Centre” on 12th September, 2016 which can be reached
through a Toll Free Number, 1924. This Helpline Number aims to assist the general
public in the following manner:-

 Redressal of Public Grievances.

 Dissemination of information regarding various initiatives, activities, schemes,
programmes and projects undertaken.
 Feedback on the perception of the Department’s performance.

28. Mobile Applications through Android

India Post's first Android Application - Post Info, is now ready for download. Centre for
Excellence in Postal Technology (CEPT), Mysore has designed and developed this
application. The basic functionalities provided by this application are tracking of
goods, search any post office’s address or PIN anywhere in the country, postage
calculator, insurance premium calculator, sending electronic Money Order (eMO),
Instant Money Order (IMO), etc., buy Philatelic products, Gangajal, etc.

29. ePost

ePost is unregistered hybrid mail provided for both retail as well as corporate customers
providing electronic transmission of messages which may include text messages,
scanned images, pictures etc and their delivery in hard copies at the destination through
postman/delivery staff. Presently, ePost booking facility is available in more than 13000
post offices and are physically delivered through a network of more than 1.54 lakh Post
Offices across India.
30. Kisan Vikas Patras (KVP)
KVP which was discontinued with effect from 1st December 2011, was relaunched on
18th November 2014. A total of 25363578 KVPs were sold during 2015-16 with a
deposit of Rs. 29825 crores and 3772195 KVPs were sold during 2016-17 upto Nov.
2016 with an investment of Rs. 9488.48 crores.

31. Jan Suraksha Scheme

Jan Suraksha Schemes viz. Pradhan Mantri Suraksha Bima Yojana (PMSBY) and
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) were launched w.e.f. 07.09.2015
in all CBS Post Offices. These schemes are available to all Post Office Savings Account
holders.

32. Sukanya Samridhi Accounts

Sukanya Samridhi Account, a new Small Savings Scheme for the welfare of girl child,
was launched on 22nd January 2015. Under the scheme, a legal / natural guardian can
open only one account in the name of one girl child and maximum two accounts in the
name of two different girl children up to 10 years from date of birth of the girl child. Till
date, about 64 lakhs accounts have been opened with a total deposit of Rs. 8000
crores.

33. Production and Fulfillment Center

A Production and Fulfillment Center has been set up at Dak Bhawan, New Delhi to
increase India Post’s revenue from Philately as a business stream for online sale of
Philatelic products through e-postoffice, Shopclues and Snapdeal.

34. Swachh Bharat Mission

Under the Swachh Bharat Mission, special cleanliness drive has been undertaken in all
Postal establishments, which includes weeding out / disposal of obsolete records /
furniture / e-waste, etc., cleaning of surrounding of Post Offices, Postal Colonies, etc.,
tree plantation, construction of common toilets and lady toilets in Post Offices, improving
Look and Feel of Post Offices, etc.

35. Social Media

Official Facebook and Twitter page of the Department has been created to publicize and
spread awareness on major initiatives of the Department. The comments and
 complaints on these platforms are reviewed and prompt actions are taken. The
Facebook page has generated more than 1 lakh likes and twitter page has more than
33000 followers till date. Twitter Seva was inaugurated by Hon’ble Minister of State for
Communications (I/C) on 2nd August 2016. The social media complaints are time bound
and are replied within 24 hours. Percentage of closure of complaints on Twitter Seva
has been around 100%. Till 30th January 2017, the Department has resolved 17,825
complaints lodged on Twitter.

36. Philately
vii. An android mobile application was launched by Philately Division for purchase of
philatelic products directly online through android phones from e-post office. e-
post office is an e-commerce portal for online purchase of Philatelic products and
other major products sold by Department of Posts. This app was uploaded
successfully on 02/11/2015 on Google Play Store.
viii. An agreement with e-commerce giants viz. snapdeal & shopclues was entered
on 04.08.2014 and 07.10 2015 respectively for making philatelic items available
for sale on more e-commerce portals.
ix. A Production and Fulfillment Center was set up in Feb 2017 in Department of
Posts to cater the need of philatelists across the country & to facilitate e-post
office & e-commerce partners viz. snapdeal & shopclues. Customer grievances
are solved telephonically and through emails.
x. Department has also introduced a new product called “Customized My Stamp” in
Dec 2015. Vide Customized stamp corporate, organizations and institutions can
get their logo printed on select my stamp themed sheets, alongside stamp may
opt for logo, images of their organization /institute, photograph(s) of their
employee(s).
xi. Crowd sourcing of Stamp-Design.
The Department has been organizing Stamp Design Competitions thrice a year
since 2015 on the occasions of Republic Day, Independence Day and Children’s
Day. These competitions have been eliciting huge response from people all over
the country. Last such competition was held on the theme ‘Nature India’ on the
occasion of Republic Day 2017. The prize winning entries are considered for use
as design on stamps and other Philatelic Material
xii. New definitive postage stamp series “Makers of India & Yoga” has been
introduced in place of previous series “Builders of Modern India”. A total of 28
stamps have been approved in “Makers of India & Yoga” series.

Achievements
In the year 2014-15 a total of 36 commemorative postage stamps were released, in the
year 2015-16 a total of 49 commemorative postage stamps were released and in the
year 2016-17 (up to Feb 2017) a total of 128 commemorative postage stamps were
released .

Revenue
Revenue generated by Philately Division on account of sale of philatelic stamps, my
stamps & philatelic ancillaries is furnished below:

Sl No. Financial Year Revenue

(in crore
rupees)
1 2014-15 32.85
2 2015-16 39.87
3 2016-17 (up to 47.34
28.02.2017)

Comparative Statement

S.No. Last three years of Pre-NDA rule Three years of NDA rule
1 Slow Policy reforms Speedy Policy reforms
2 No action for ease of doing business Policy reforms for ease of doing
business
3 511 MHz of spectrum sold 1383 MHz of spectrum sold
4 Upfront payment of Rs 19,959 Upfront payment of Rs 64,771 crores
crores received from spectrum received from spectrum auction
auction
5 No progress for launch of new Speedy progress for launch of new
services such as 4G despite auction services such as 4G
of spectrum in 2010
6 Number portability within service Introduction of Nationwide mobile
area introduced Number Portability
7 Only 2,292 Kms of OFC pipe laid 2,06,898 Kms of OFC pipe laid for
NOFN/ BharatNet project
8 358 Kms of OFC laid for NOFN 1,74,880 Kms of OFC laid for NOFN/
project BharatNet project
9 No Gram Panchayat lit under NOFN 16,573 Gram Panchayats lit under
project BharatNet project
10 Budget allocation of Rs 4834.28 Budget allocation of Rs 12812.77
crores crores
11 Expenditure on NOFN – Rs 919 Expenditure on NOFN – Rs 8383.79
crores ( 2012-14) crores (2014-2017 till January, 2017)
 Achievements of Department of Telecom during 2014-17 (NDA period)

1. Restoring confidence: One of the first challenges was to restore confidence, bring
in transparency and ensure good governance in this sector. The measures taken in
the first few months led to good results.

2. Most successful Spectrum Auction ever: Spectrum auction was conducted with
upfront revenue of Rs.32337 crores in 2015. Another auction was conducted in
October, 2016 which witnessed highest ever sale of spectrum and upfront revenue
as detailed below:

2012 2013 2014 2015 2016

Spectrum 128 MHz 30 MHz 353 MHz 418 MHz 965 MHz
Upfront Revenue 1722 0 18267 32337 32434
(Rs cr)

Prior to commencement of the auction in 2016, the reforms undertaken are as

follows:-

(a) Harmonization of spectrum resulting in 36.25 MHz in 800 MHz band and 197
MHz in 1800 MHz band additional spectrum for including in the auction
conducted in October, 2016. This also resulted in making the spectrum
contiguous for the various operators which increased the spectral efficiency and
allowed them to provide latest 4G technology.
(b) Ensuring that spectrum is available in whole of the service areas
(c) Issues relating to different Spectrum Usage Charge (SUC) in different bands
resolved and SUC rationalized.
(d) Commitment for frequency assignment within one month of making payment for
the spectrum acquired in the auction.

 There is no spectrum shortage in the country after this auction.

 With the introduction of new technology, better data speed will be available to
consumers giving a flick to mobile broadband and digital India.

3. Spectrum sharing and trading permitted: The recommendations for allowing

sharing and trading of spectrum were pending for long back. The Government
decided in September, 2015 to allow spectrum sharing and in October, 2015 to allow
trading of spectrum. This ensures that the spectrum, a scarce resource, is utilised in
most efficient manner to provide state of art technology for consumers and resulting
 in higher data speed and also a step in ease of doing business apart from providing
an exit route to a service provider.

4. Spectrum liberalisation: The Government announced a policy of spectrum

liberalisation in November, 2015 by which the service providers can liberalise their
spectrum which was allocated to them administratively prior to 2010 to provide latest
technology.

5. Discontinuation of Wireless Operating Licence for Access Spectrum in

November, 2016: In order to promote ease of doing business, the Wireless
Operating Licence for Access Spectrum has been discontinued. This facilitate faster
roll out of the wireless network as earlier no BTS could have radiated without a
wireless operating licence.

6. Allocation of spectrum in whole of the service area where earlier spectrum

was not allocated administratively or through auction: With the harmonisation of
spectrum in 1800 MHz band, the spectrum was allocated in balance districts of a
service area where it was earlier not allocated due to non-availability as being used
by Defence.

7. Aadhaar Based E-KYC Services for issuing mobile connections: From 16th
August 2016, it has been decided to allow paperless ‘Aadhaar based E-KYC
services’ for issuing mobile connections wherein the customer as well as Point of
Sale Agent of the Telecom Service Providers will be authenticated from UIDAI based
on their biometrics. This is another step for ease of doing business.

8. Nationwide Mobile Number Portability: Nationwide Mobile Number Portability was

implemented in July, 2015 which allows subscribers to retain their existing mobile
number when they switch from one access service provider to other access service
provider or move from one Licensed Service Area (LSA) to the other LSA. Earlier
Mobile Number Portability was restricted within the LSA.

9. Virtual Network Operators (VNO): Unified Licence (VNO) has been introduced in
May 2016.

10. IP Level Interconnection: In order to utilise resources efficiently, interconnection at

Internet Protocol (IP) level has been permitted.
11. Prior intimation for launching service: For ease of doing business, the
requirement of prior approval before launching of services has been done away with
and only prior intimation is required for launching of services.

12. Sharing of active infrastructure: Sharing of active infrastructure such as Radio

Access Network (RAN), Antenna, Feeder Cable, e-Node B, backhaul has been
permitted.

13. Single Emergency Number (112): It has been decided to implement a project for
Single Emergency Number 112 for all emergencies in collaboration with Ministry of
Home Affairs and State Governments.

14. Digital Payment Helpline (14444): Digital Payment helpline 14444 has been
established in coordination with NASCOM and Niti Aayog.

15. Call Drop: Various steps have been taken to reduce the call drops. The Telecom
Service Providers (TSPs) have reported that they have already installed more than
1,60,000 additional BTSs (Base Transceiver Stations) across the country during 6½
month period from 15th June 2016 to 31st December 2016 and further plan to install
about 1,10,000 additional BTSs across the country up to 31st March 2017. The TSPs
have also informed that about 4,97,000 BTSs have been optimized for improvement
in Network Performance during June 2015 onwards and in addition, frequency re-
planning done for more than 4,25,000 BTSs for handling interference issues.

16. IVRS Feedback System on Call Drops: In order to obtain direct feedback from
subscribers on call drops, DoT had launched an Integrated Voice Response System
(IVRS) system using toll free short code 1955 in 5 States on 23rd December 2016
and in all the States, except Punjab and Manipur, from 12 th January, 2017 onwards.
This initiative of Department of Telecommunications is proving very useful in not
only getting the direct customer feedback on pan-India basis but also identifying the
areas of poor network quality and its remedial action by the service providers.

17. ROW Rules: Rules for Right of Way and for installation of towers have been notified
in January, 2017 which will facilitate expeditious roll out of the network.

18. USOF Projects:

(i) BharatNet is planned to create network infrastructure for providing Broadband

connectivity to all Gram Panchayats (GPs) (approx. 2,50,000) in the country. The
Project is being implemented in a Phased manner, with Phase-I to connect
 1,00,000 GPs. As on June, 2014 only 2292 KMs of OFC pipe was laid with
358 KMs of Optical fibre.

With the continuous monitoring and sustained efforts, the project has been
expedited and the status of the project at the end of Feb 2017 is as follows:-

Pipe laid – 2,09,190 Kms

OFC laid – 1,75,238 Kms
Pipe laid in Gram Panchayats – 93,343 GPs
OFC laid in Gram Panchayats – 77,452 GPs
GPs lit – 16,573 GPs

(ii) 2186 sites out of 2199 are radiating in Left Wing Extremism (LWE) affected
States with a total estimated cost of Rs.3567.58 crore.

(iii) On 10.09.2014, the Government approved a proposal to implement a

Development Plan for the North-Eastern Region (NER) to provide mobile
coverage to 8621 identified uncovered villages by installation of about 6673
mobile towers with the estimated cost of Rs. 5336.18 crore.

(iv) On 14.12.2016, Telecom Commission approved the proposal for providing

mobile services in 172 uncovered villages and entire 129 Km of National
Highway (NH 223) in Andaman & Nicobar Islands. The estimated cost is Rs.
262.91 Crore.

(v) On 14.12.2016, Telecom Commission approved the proposal for installation of 10

new BTSs to improve the Quality of Service (QoS) in Lakshadweep Islands. The
estimated cost of project is Rs. 10.1 Crore and to be funded by USOF.

(vi) On 21.09.2016, the Government approved a proposal for providing Optical Fibre
Cable (OFC) connectivity from mainland India (Chennai) to Andaman & Nicobar
Islands. The estimated cost for CAPEX is Rs. 880.03 Crore and to be funded by
USOF. The OPEX is Rs. 44.47 Crore per annum and to be funded by Andaman
& Nicobar Islands and UT Administration/MHA.

(vii) USOF schemes for Creation of OFC Infrastructure in North-East are being
implemented to provide sufficient back-haul capacity to integrate the voice and
data traffic from the access network in the rural areas to their core network OFC
network augmentation between the Block HQ and Districts HQ in North-East.
19. Revival of BSNL and MTNL: Revival of both these telecom PSUs have been a
priority area for this government. It is regrettable that in 2004 BSNL had registered a
profit of Rs. 10,183 crores (when government led by Shri Vajpayee left office) and by
2014 its losses have reached to Rs. 7,020 crores. MTNL was also in profit till 2008-
09 but as on 31.12.2014 MTNL has a debt of Rs.16,306 crores. The government has
taken conscious decision to revive these two PSUs:

20. WiFi at Tourist Places: WiFi connectivity at 63 important tourist places has been
provided.

21. Building Robust and Secure Network for Defence Forces: Network For
Spectrum (NFS), planned as an Exclusive Optical Fibre based ‘Nationwide
Communication Network’ for Defence Services, has been given a big push for its
early completion. The project is being implemented by BSNL.

22. National Telecom M2M Roadmap: ‘National Telecom M2M Roadmap’ has been
released in May 2015.

23. Decline trends of revenue: During the current financial year, license fee collection
has shown downward trend. Telecom Commission in its meeting held on 22.02.2017
desired that the consensus regarding major challenges being faced by telecom
sector may be brought to the notice of TRAI. TRAI was apprised accordingly on
23.02.2017.
 Major events in Department of Telecom during 2011-14 (Pre-NDA period)

1. Hon’ble Supreme Court vide its order dated 02.02.2012 cancelled the licenses
granted in 2008. As a result of this, 122 Unified Access Service Licenses granted in
2008 were cancelled.

2. New Telecom Policy: NTP-2012 was announced in 2012 with vision to provide
secure, reliable, affordable and high quality converged telecommunication services
anytime, anywhere for an accelerated inclusive socio-economic development.

3. Trust Deficit: The Department of Telecom was in the news for all wrong reasons for
last many years. There was a trust deficit among all stakeholders of the sector.

4. Spectrum Auction: The spectrum auction was conducted in 2012 to 2014 for 800
MHz, 900 MHz and 1800 MHz bands. The quantity sold and the upfront revenue
realised is as follows:

Year Spectrum sold Upfront Revenue

(in crores)
2012 128 MHz 1722
2013 30 MHz 0
2014 353 MHz 18267

5. Introduction of Unified License regime: Unified License regime was introduced in

August, 2013 wherein allocation of access spectrum was delinked from the license
and is to be procured separately through auction process.

6. Merger and Acquisition guidelines: The revised guidelines for merger and
acquisition in telecom sector were issued in February, 2014 after a period of 6 years.

7. Launching of 3G services: The spectrum in 2100 MHz band was allocated in year
2010 through auction process and the various operators rolled out 3G services
progressively from 2011 onwards. This provided better data speed to customers
through wireless media.

8. Mobile Number Portability: Mobile Number Portability was implemented in,

January, 2012 which allows subscribers to retain their existing mobile number when
 they switch from one access service provider to other access service provider within
Licensed Service Area (LSA).

9. National Optical Fibre Network (NOFN): is planned to create network

infrastructure for providing Broadband connectivity to all Gram Panchayats (GPs)
(approx. 2,50,000) in the country. The Project is being implemented in a Phased
manner, with Phase-I to connect 1,00,000 GPs. As on June, 2014 only 2292 KMs of
OFC pipe was laid with 358 KMs of Optical fibre.

10. Building Robust and Secure Network for Defence Forces: Network for Spectrum
(NFS), planned as an Exclusive Optical Fibre based ‘Nationwide Communication
Network’ for Defence Services, has been given a big push for its early completion.
The project is being implemented by BSNL.