Government service and private service

It all started with the revenue improvement of railways department. Is the upward trend due to the leadership of the railway minister or the country's economomy triggers lot more goods transport, travel? GA was in favor of leadership idea. I was pointing out the economy boom.

GA: Not all depts are doing loosy service. Take for eg, post office is providing better customer experience than before.

JB: That is because the post office is a dying dept. It is loosing its revenue in all front. It has to care the customer for survival purpose.

MS: A card costing 2 rupees will be sold for 50p by the government post office; it is meant to do that. It was never designed to make profit. So, they will never kill the post office.

GA: Also, the private players concentrate only on 20% of the geography. 80% is covered by postal dept. Not everyone can afford to pay for a private couriers.

JB: 80% of the transaction is done in the 20% area. So, postal dept is not going to gain much by working on 80% of locations and gaining less than 20%

MS: The postal dept doesnot look at profit. It purpose is to serve the people.

JB: Agreed. However, the expense was, let us say, Rs 100 in those days and they earned Rs 80. Govt buffered the Rs 20 loss. However, today the expense could be more than Rs 120 but the profit is less than Rs 20. This cannot run for a long time in this manner.

GA: A govt should not privatize anything. The private players will have many hidden agenda.

JB: I am fine paying more if the service is good, with quality, and timely manner. I can question anyone in a private firm, walk into manager's cabin and complain to get things done.

GA: A common man doesnot expects such facilities. He needs the work done ...

Is a post office determined to run on loss? Should it be considered for shutting down?