Responding to an unstarred question in the Lok sabha today minister of state for communications and information technology Dr. Shakeel Ahmad provided the details of the franchised postal outlet scheme, introduced in February 2007 to provide increased access to postal counter services. (See: Postal franchisee scheme expanded)

The scheme, which was launched in select urban areas, is now being extended to cover upcoming urban townships, special economic zones, major highway projects, upcoming industrial centers and colleges.

1. Only counter services have been franchised, while delivery and transmission will be continued through the department. Linking arrangements for the franchised outlets will be provided by the franchisee. 

2. The franchisee will provide service across the counter for a minimum defined time schedule with flexibility to work round the clock.

3. In addition to select urban areas, the franchisee scheme will now cover areas such as new upcoming urban townships, special economic zones, major highway projects, upcoming new industrial centres, colleges, polytechnics, universities, professional colleges, etc.

4. Products and services offered:
a. Sale of stamps and stationery
b. Booking registered articles, speed post articles, money orders (on EDBO model), e-post, etc,
c. Functioning as an agent for PLI and provide related after sales service, including collection of premia, subject to fulfillment of criteria for PLI agents
d. Marketing products for which the postal department has a corporate agency or tie-up and provide related follow up services, subject to agreement with the other organisations involved
e. Providing retail and bill/tax/fine collection/payment services of the Department. (subject to agreement with the other organizations involved)
f. Facilitating the provision of e-governance and citizen centric services (subject to agreement with the other organizations involved)
g. Any other service introduced by the Department in future through its outlets which is considered amenable to the franchisee model, subject to agreement with the other organizations involved

Dr Ahmad said that the model has adequate inbuilt flexibility to allow a range of services to be extended through the outlets factoring local needs and demand, and the range could be increased where necessary. He said that the range of counter services at different outlets could vary, keeping in view the location and its capacity to generate revenues.

5. Criteria for Selection: 
Selected franchisees are required to sign a memorandum of agreement with the postal department.  Criteria for selection has been fixed considering the need to select persons with the capacity to manage and market a range of products, along with a sense of the community needs and public aspects of the job, and willingness to accept technological options.
a) Individuals, institutions and other entities would be eligible for taking up the Franchisee work and they would need to enter in to an agreement.
b) Educational qualifications:  10+2 standard or 12th class pass of a recognized University or Board of School Education or Board of Secondary Education.
c) Preference would be given to postal pensioners and those able to provide computer facilities.
d) Premises: Proper appropriately located and accessible premises, properly maintained with suitable display of approved signages.
e) Applicant should be willing to make the necessary investments to opetrate the business and be able to provide a sample business plan on details of how the premises will be run, what the opening hours would be, investments proposed, market conditions, proposals for marketing products, awareness of customer base, role in local community, budget, finances, etc.
Two references from respected persons of the locality where the franchise is proposed to be located would also be required to establish the character and antecedents of the applicant.
f)  A business plan would be prepared taking into account the anticipated minimum level of business/ revenue worked out by the Divisional Head for the specific franchisee.
g) Security deposit: The security deposit to be provided by the franchisee would be based on the maximum possible level of financial transactions likely be undertaken by the franchisee in a day.
The minimum security deposit required is Rs10,000 in the shape of a performance bank guarantee that could be forfeited either in part or its entirety in the event of infringement in terms and conditions of the memorandum of agreement at the sole discretion of the Department of Posts whose decision would be final and binding.
h)  Selection would be made by a committee comprising the Heads of the concerned Division and a neighbouring Division, based on a report from the Assistant Superintendent Posts/Sub Divisional Inspector Posts.

6. Remuneration to franchisee:
The franchisee will earn remuneration on commission basis on services provided, as fixed by the Department from time to time.

7. Monitoring
The monitoring mechanism for the scheme will be strengthened vis-à-vis regular outlets, with monthly monitoring by inspectors.  An element of electronic monitoring will be introduced in due course.

8. Training
Introduction to the objectives, products/ services, basic procedures, upkeep of the premises and customer care would be part of induction training of the franchisee. The briefing will be done by the Assistant Superintendent Posts/ Sub-Divisional Inspector Posts of the area. 

9. Branding of franchisee outlet
Standard signages for India Post franchisee would be provided to give a uniform look to all franchised outlets.