Express cos demand industry status

The apex body of express companies, engaged in movement of goods through documents and parcels, on Friday demanded industry status and an independent regulator for the Rs 2,493-crore (Rs 24.93 billion) sector.

Industry status will give express companies easier access to finance, while a regulator will ensure that regulations do not curb growth, Express Industry Council of India chairman Tushar Jani said.

Infrastructure facilities, easing customs regulations and procedure will enable the express industry to clock a 35 per cent growth per annum against 20 per cent at present.

He said the prevailing customs norms like the cap of Rs 50,000 for exports through courier per consignment must be removed.

The government has agreed in-priniciple to allow the council to set up an electronic data interchange at international airports in Delhi and Mumbai each with a combined cost of Rs 4.5 crore (Rs 45 million).

The proposed EDIs, to be operated jointly by the Central Board of Excise and Customs and the Council, will facilitate movement of goods from airports, he said.

Pointing out that transaction costs of movement of goods within the country and outside are too high, Jani said if 3 per cent reduction in the costs is ensured, GDP will increase by 0.5 per cent.