Comprehensive Long-Term Leasing Policy for Hiring Office Accommodation – Department of Posts (03.06.2026)

No. BDG-20/3/2021-Building-DOP

Government of India 

Ministry of Communications 

Department of Posts (Estates Division)

Dak Bhawan, Sansad Marg, New Delhi – 110001 Dated: 03.06.2026

To, All Heads of Circles/Regions Parcel Directorate

Subject: Long term leasing policy for hiring accommodation for office purpose in Department of Posts – reg.

In supersession of existing orders/instructions issued vide Part 'A' of Estates Division letter No. BDG-20/3/2021-Building-DoP dated 18.02.2022, the new comprehensive guidelines for leasing office accommodation for office use including Postal Operations and Infrastructure purpose for use of the Department have been prepared with the approval of the competent authority.

The revised guidelines of Part- 'A' of Estates Division letter No. BDG-20/3/2021-Building-DoP dated 18.02.2022 are enclosed as Annexure. All concerned are requested to adhere to these guidelines.

This is issued with the concurrence of JS&FA and approval of Secretary (Posts).

Encl: As above

Digitally signed by Dilip Kumar Sahu Date: 03-06-2026 08:51:54 (Director, Estates)

Copy to:

1. All Members of Postal Service Board
2. All CGMs of Directorates
3. CPMSG of all postal circles
4. Director, RAKNPA, Ghaziabad
5. Chief Engineer (Civil)-I and II
6. All Circles' IFAs
7. All Sr. DDGs/DDGs
8. All DA(P)s
9. All Directors, Postal Training Centers
10. DO (BP-I) and DO (BP-II)
11. All staff Unions/Associations

Annexure (Highlights from Long Term Leasing Policy)

Scope: Hiring accommodation for post offices, administrative offices, mail offices, sorting hubs, parcel hubs, warehouses, and vacant land for postal logistics projects.

Fair Rent Assessment Committees (FRAC):

• Three levels (1st, 2nd, 3rd) based on city classification (X, Y, Z).
• Each level has defined financial powers and composition (Divisional Head, Engineers, Accounts Officers).

Rent Revision:

• Normally once in 5 years; in some cases (Parcel Hubs) once in 3 years.
• Increase capped at 8% per annum (12% for metro cities).

Lease Agreements:

• Can be executed for 3/5/10/15/20/25 years.
• Renewal and rent revision clauses included.

Valuation Principles:

• Based on reproduction cost, depreciated value, land cost, and prevailing market rent.
• Aim to balance valuation rent with market rent.

Responsibilities:

• Lessor must maintain premises in good condition, ensure fire safety approvals, electricity/water supply, parking, and approach roads.
• Lessee entitled to use premises fully for postal operations.

Termination:

• Department retains right to terminate lease if conditions are not met.