India Post to Transform into Profitable Real Estate Player: Union Minister Jyotiraditya Scindia’s Plan
Union Minister Jyotiraditya Scindia unveils a strategic plan to monetize India Post's extensive land assets and introduce new business verticals, aiming to make the postal department a profit center within five years.
India PostReal EstateLand MonetisationJyotiraditya ScindiaProfit CenterReal Estate NewsJul 07, 2025
The plan involves identifying and leasing out commercially viable parts of the department’s prime real estate while maintaining postal operations. Scindia emphasized the importance of leveraging assets, stating, “Whether it’s telecom or the department of posts, we must sweat our assets. Therefore, if you have a large piece of land, you can have the post office on the ground and build the whole building and lease out space.”
To support this initiative, the ministry has started compiling a list of all its properties, verifying ownership documents, and identifying land parcels with commercial potential. The goal is to maximize the value of these assets and generate additional revenue streams for the department.
The postal department has also been restructured into six strategic verticals, including mail, international mail, parcels, Postal Life Insurance, savings bank services, and citizen-centric services. Each vertical will operate as a separate business unit with its own profit and loss statement. Scindia noted, “We have undertaken a business process reengineering and converted the department into six verticals and four horizontals... We are looking at six strategic business units with profit and loss for each of them.”
To enhance its digital capabilities, the department has appointed a chief technology officer and deputy CTOs. The minister expects the organization to evolve into a full-fledged logistics platform, leveraging its extensive reach across the country.
Despite currently incurring expenses of around ₹27,000 crore while generating revenue of about ₹12,000 crore, the government is optimistic about the department's future. Scindia stated, “We are working on IT 2.0... The restructuring and capex by the government will hopefully turn it into a profit centre in five years.”
The postal department is also expanding its services by partnering with government agencies and private players. New services include Aadhaar enrolment, passport facilitation, and mutual fund distribution. The department is introducing express parcel delivery and new mail products to improve efficiency and relevance. Scindia highlighted the potential of India Post, saying, “No one has the breadth and depth of India Post, even internationally. The point is how much can you push through this pipe and increase different products.”
In addition to these initiatives, the government is focusing on the development of the North-East region. Scindia mentioned that ₹5 lakh crore is being invested in infrastructure, and private firms have pledged ₹4.2 lakh crore in commitments at the North-East Investment Summit. The Prime Minister has visited the region more than 70 times in the past 11 years, underscoring the government's commitment to the region's development.
On the telecom front, Scindia reported that India has achieved the world’s fastest 5G rollout, now covering 99.6% of districts and 82% of the population. BSNL has installed 94,500 towers and is planning to lead the global 6G rollout. BSNL has also turned profitable after 18 years, with quarterly profits in December and March, and a 55% reduction in annual losses.
These strategic moves by the Department of Posts and the government aim to transform India Post into a modern, profitable, and efficient organization, contributing significantly to the nation's economic growth.
Frequently Asked Questions
What is the main goal of the Department of Posts' new plan?
The main goal is to transform India Post into a profit-generating system by monetizing land assets and developing new business verticals.
How is the Department of Posts restructured?
The department is restructured into six strategic verticals: mail, international mail, parcels, Postal Life Insurance, savings bank services, and citizen-centric services.
What new services is India Post introducing?
India Post is introducing new services such as Aadhaar enrolment, passport facilitation, mutual fund distribution, express parcel delivery, and new mail products.
How much is the government investing in the North-East region?
The government is investing ₹5 lakh crore in infrastructure in the North-East region.
What is the current status of India's 5G coverage?
India's 5G coverage has reached 99.6% of districts and 82% of the population.
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