Request for Suggestions Regarding enhancement of Financial Powers for Vehicle Hiring and Operational Challenges

F. No. 01-02/2024-PD

Government of India 

Ministry of Communications 

Department of Posts Parcel Directorate

Malcha Marg Post Office Complex, Chanakyapuri, New Delhi-110021 Dated: 13.04.2026

To Chief Postmaster Generals All Postal Circles

Subject: Request for Suggestions Regarding enhancement of Financial Powers for Vehicle Hiring and Operational Challenges

Dear Sir/Madam,

As part of the Department of Posts' ongoing transformation, the department is working towards achieving 50% of its total revenue from the parcel vertical as per the directions given by Hon'ble Minister of Communications in the various meetings. To facilitate this, Department has already proposed to strengthen the logistics infrastructure, particularly across the first mile, middle mile, and last mile operations through the Postal Logistics Infrastructure Project. A key aspect of this transformation is addressing the availability of vehicles for parcel pickup, transmission and delivery, which is crucial for both the first, middle and last miles.

Following the discussions held by the department with the Ministry of Finance, it has been mandated that the department should focus on leasing vehicles for operational use. Currently, financial powers have been delegated to the Chief Postmaster General, Postmaster General, Directors, Directors and Divisional Heads within the circles to hire vehicles based on operational requirements. However, it has come to our attention to the Directorate that there are significant operational constraints being faced due to the non-availability of vehicles, which are directly impacting the efficiency of parcel pickup, transmission and delivery operations.

For instance, a recent survey of PM Vishwakarmas toolkits revealed that approximately 90% of the toolkits are being delivered to the post office rather than to the doorstep of the addressee. This is a clear indication of challenges in the last mile, particularly when handling heavy parcels. In many cases, parcels are being delivered by simply calling the addressee, rather than attempting doorstep delivery, which compromises service quality and customer satisfaction.

Despite the financial powers granted at various levels, delays in file routing and limitations in these powers continue to hinder the smooth functioning of vehicle hiring. This also leads to inefficiencies in vehicle allocation, especially when hiring vehicles for longer routes, specific parcels, or for particular operational requirements. There is a need for an enhancement in the financial powers at different levels to mitigate these delays and improve operational efficiency.

Therefore, it is requested that suggestions on the enhancement of financial powers for vehicle hiring, particularly for Pick Up, Transmission and delivery of mail and parcel.

Additionally, beyond financial powers, if there are any other operational constraints, roadblocks, or challenges, are being faced by the circles in increasing parcel business or improving logistics, that may also be highlighted as well. This will help in formulating a comprehensive strategy to overcome these barriers and improve parcel logistics across the department.

These suggestions may be shared by the circles with Parcel Directorate latest by 20th April 2026. This has to be presented to the Hon'ble Minister of Communication on 21st April 2026 hence may be given top priority. If no comments are received by 20st April for the specific circle, Nil inputs would be considered from the specific circle.

This issues with the approval of the competent authority.

S. Saumbery (Saravana Selvan S) Assistant Director - II 

Email: parceldte@gmail.com DIGIPIN-39J43J5564

Ph: 011-26111182