Centre plans commercial redevelopment of India Post properties: Jyotiraditya Scindia

Jyotiraditya Scindia

The Department of Posts is considering developing some of its prime real estate for commercial purposes as part of a plan to revamp and reposition the entire network, including the 1.6 lakh post offices, into a profit centre, Communications Minister Jyotiraditya Scindia told TOI. Earlier in an interview to ET, Scindia said the department is looking to turn around India Post into a profit-making entity in the coming 5-6 years and is enabling various measures to achieve the target.

The Minister said India Post currently has expenditure of around Rs 35,000 to Rs 36,000 crore while the revenues are in the range of Rs 12,000 to Rs 14,000 crore, leading to a cost to the government of around Rs 22,000 crore.

Outlining government's plan, Scindia said the Centre has initiated a major plan to revitalise the vast real estate assets of the Department of Posts, aiming to transform the country’s extensive postal network into a profitable commercial entity. Under the proposed framework, India Post’s legacy infrastructure, including over 1.6 lakh post offices, will be integrated into a new commercial leasing model that monetises prime urban and semi-urban land parcels across India.

The move, led by the Ministry of Communications, is a strategic attempt to modernise and reposition the role of India Post in an increasingly digital economy. Officials overseeing the initiative have indicated that the project focuses on asset optimisation, where under-utilised or high-value properties will be developed into commercially viable spaces. The approach includes developing multi-use buildings with post offices on the ground level and commercial establishments such as offices and retail spaces above.

The monetisation plan dovetails with India’s broader national infrastructure pipeline and urbanisation strategy. It aligns with the government’s objectives of creating smart, sustainable, and equitable urban spaces that are financially resilient, remarked Scindia.

India Post controls some of the most strategically located real estate assets across metros, tier-2 cities, and even small towns. Much of this property was acquired during the colonial and post-Independence periods, which today sit atop rapidly appreciating urban zones.

In addition to real estate monetisation, the Department of Posts is being restructured internally. As part of the overhaul, six verticals have been established to streamline operations and diversify revenue streams. These include logistics and parcel services, retail and financial products, e-commerce facilitation, and digital inclusion.

With the government already pursuing asset monetisation programmes across the railway and telecom sectors, the India Post initiative represents another step in rationalising public sector real estate to boost economic productivity. As the project unfolds, its ability to merge profit with purpose will be critical in setting a precedent for sustainable urban development in India.