Y-3822026-PE-II dtd. 17.07.2026.pdf
No. Y-3 8 I 2 I 2O26-PE-II-DOP
Government of India
Ministry of Communications
Department of Posts
(Establishment Division)
Dak Bhawan, Sansad Marg,
New Delhi - 110001
Dated: LTth July, 2026
To,
A1l Heads of Postal Circles
Sub: Comprehensive Review and Rationalisation of Administrative Units across Postal Circles for Enhancing Administrative Efficiency, Business Development and Revenue Generation regarding.
The Department of Posts is undergoing a significant transformation with a view to becoming a customer-centric, technolory-enabled, operationally efficient and financially sustainable organisation. The administrative structure is, therefore, required to remain responsive to the needs of service delivery, business growth and revenue generation.
2. During the last decade, the Department's operational profile has expanded considerably through e-commerce logistics, parcel services, digital products, financial inclusion, Direct Benefit Transfer (DBT), Government flagship programmes and other citizen-centric services. APT 2.O, digitisation of processes and changing customer expectations have further transformed the manner in which postal senrices are delivered.
3. The administrative framework at the Circle, Regional, Divisional and Sub-Divisional levels has, however, not been comprehensively reviewed against current workload, business volumes, technolory-enabled operations and future organisational requirements.
4. Consequently, significant variations have arisen in jurisdiction, workload, number of establishments, revenue potential and supervisory span. While some units have become unwieldy, others remain under-utilised, adversely affecting superwision, accountability, senrice delivery, business development and efficient deployment of resources.
5. To address these imbalances and establish a balanced, agile and business-oriented administrative framework, the Competent Authority has decided to undertake a Comprehensive Review and Rationalisation of all Administrative Units across Postal Circles with the follo*ing objectives :
(i) to rationalise jurisdiction, workload and supervisory sp€rn so as to create balanced and viable administrative units;
(ii) to strengthen governance, monitoring, accountability and decentralised decision-making;
(iii) to improve operational efficiency, service delivery and responsiveness to customers;
(iv) to enable business development, customer outreach, revenue growth and linancial sustainability; and
(") to optimise the deployment of manpower, infrastmcture and technolory while ensuring alignment with future operational, commercial and technological requirements.
6. Scope of Review
The review shall cover the following levels of the administrative hierarchy in sequence:
(a) Sub-Divisions;
(b) Divisions;
(c) Regions; and
(d) Postal Circles.
The review shall be evidence-based and shall have regard to applicable SIU norms, workload, administrative span, operational viability, financial sustainability, business potential and long-term feasibility.
6.1 Review and Rebalancing of Sub-Divisions
(il Workload and Scale
(a) applicable SIU norms;
(b) number and distribution of Sub Post Offices and Branch Post Offices (10-15 Sub Post Offices or 80 Branch Post Offices as indicative supervisory benchmarks)
(c) sanctioned strength and staff in position; and
(d) population, geographical area, terrain and contiguity. (ii) Administrative and Governance Considerations
(a) span of supervision and reporting arrangements;
(b) inspection, monitoring and field-visit requirements; and (iii) Operational Considerations
(a) travel time and accessibility between offices;
(b) transport, communication and digital connectivity; and
(ivf Financial and Business Considerations
(a) revenue and attributable expenditure;
(b) Expenditure Coverage Ratio (ECR), wherever applicable; (c) one-time and recurring cost implications; and
(d) existing business base and future growth potential.
Where the assessment indicates a need for creation, bifurcation, merger or reorganisation of a Sub-Division, the Circle shall submit a detailed proposal to the Postal Directorate in the prescribed proforma.
6.2 Review and Rebalancing of Divisions
Each Postal Division shall be comprehensively reviewed under the following heads:
(i) Workload and Scale
(a) applicable SIU norrns;
(b) number and distribution of Head Post Offices, Sub Post Offices, Branch Post Offices, Mail Offices and other units, (50 Sub Post Oflices or 400 Branch Post Offices as indicative benchmarks)
(c) sanctioned strength and staff in position; and
(d) population, geographical area, terrain and contiguity. (iif Administrative and Governance Considerations
(a) span of supenrision and reporting arrangements;
(b) inspection, monitoring and field-visit requirements; and (iiil Operational Considerations
(a) travel time and accessibility between offices;
(b) transport, communication and digital connectivity; and (ivf Financial and Business Considerations
(a) revenue and attributable expenditure;
(b) Expenditure Coverage Ratio (ECR), wherever applicable; (c) one-time and recurring cost implications; and
(d) existing business base and future growth potential.
6.3 Review and Rebalancing of Regions
The existing Regional administrative structure shall be reviewed with reference to the following parameters:
(if Worktoad and Scale
(a) number and distribution of Head Post Offices, Sub Post Offices, Branch Post Offices, Mail Offices and other units
(c) sanctioned strength and staff in position; and
(d) population, geographical area, terrain and contiguity.
(ii) Administrative and Governance Considerations (a) span of governance and (b) coordination with State/Union Territory Governments authorities;
(iiif Operational Considerations
(a) travel time and accessibility between offices; (b) transport, communication and digital connectivity; and (ivf Financial and Business Considerations
(a) revenue and attributable expenditure;
(b) Expenditure Coverage Ratio (ECR), wherever applicable; (c) one-time and recurring cost implications; and (d) existing business base and future growth potential
supervision; and other
Where the assessment indicates a need for creation, bifurcation, merger or reorganisation of a Region, the Circle shall submit a detailed proposal to the Postal Directorate in the prescribed proforma.
6.4 Review and Rebalancing of Postal Circles
Each Postal Circle shall examine whether its existing jurisdiction remains appropriate in the light of current and future administrative, operational and business requirements. The assessment shall cover the following parameters:
(i) trIorkload and Scale
(a) number of Regions, Postal Divisions, RMS Divisions, Sub-Divisions, Post Offices, Mail Offices and employees;
(b) population, geographical area, districts and States/Union Territories covered;
(c) geographical contiguity, terrain and strategic or developmental considerations;
(iil Administrative and Governance Considerations
(a) span of governance and supervision; (b) coordination with State/Union Territory Governments and other authorities;
(iii) Operational Considerations
(a) travel time and accessibility between offices;
(b) transport, communication and digital connectivity; and (iv) Financial and Business Considerations
(a) revenue and attributable expenditure;
(b) Expenditure Coverage Ratio (ECR), wherever applicable; (c) one-time and recurring cost implications; and
(d) existing business base and future growth potential.
Where the assessment indicates that bifurcation, merger or reorganisation of a Postal Circle would improve govem.ance, operational efficiency or business development, a comprehensive proposal, duly supported by detailed justification, shall be submitted to the Postal Directorate in the prescribed proforma.
7. Guiding Principles for Preparation of Proposals
While carrying out the review and preparing proposals, Circles shall adhere to the following principles:
(il Optimum Utilisation of Enisting Infrastructure
Any proposal involving creation of an administrative unit shall, to the maximum extent possible, utilise existing departmental land, buildings, office accommodation, furniture, equipment, connectivity, technologr and common facilities. Additional expenditure on infrastructure should be avoided to the maximum extent possible
(iil Manpower through Redeployment and Matching Savings The staffing requirement of any proposed unit shall be met through rationalisation and redeployment of existing sanctioned posts on a matching-savings basis, without adversely affecting operational efficiency. No proposal for creation of additional posts in any cadre shall be included. The proposal shall specify the cadre-wise source, destination and transition arrangement for each post proposed to be redeployed.
(iii) Financial Viability
Every proposal shall be financially viable and should aim to minirnize or eliminate additional recurring expenditure. Wherever any financial implication is unavoidable, the proposal shall clearly justify the expenditure along with the expected financial returns.
Note: Notwithstanding the above criteria and applicable SIU norms, a Circle may submit a proposal which demonstrably improves administrative effectiveness, operational efficiency or revenue realisation, provided that the proposal is supported by detailed justification and is financially viable. Such proposals shall be considered by the Directorate on merits.
8. Submission of Proposals
All proposals shall be submitted in the prescribed proforma along with detailed justification, supporting data and a specific recommendation. Each proposal shall be self-contained and shall include the following information under distinct heads:
(i) Justification and Comparative Assessment
(b) comparative assessment against applicable SIU norms
(c) jurisdictional maps, workload statements, service data and other supporting evidence.
(iil Manpower and Implementation Plan
(a) cadre-wise sanctioned and working strength and the post-wise redeployment plan, indicating source and destination;
(b) matching savings and no additional post is proposed to be created; and
(iiil Infrastructure and Operational Feasibility
(a) availability and suitability of office accommodation, furniture, equipment, connectivity and technolory;
(b) requirement, if any, for alteration, relocation or procurement, together with cost and timeline; and
(c) quantified operational improvements, including changes in superwisory span, travel time, service standards, coordination and issue-resolution time.
(ivl Financial and Business Assessment
(a) one-time and recurring financial implications
(b) cost-benefit analysis and the likely impact on Establishment Cost Ratio (ECR); and
(c) estimated revenue enhancement and business potential for the next three financial years, togetJrer with the underlying assumptions.
(vl Approvals and Supporting Documents
(a) specific recommendation of the Circle, supported by the prescribed data sheets and certificates;
(b) approval of the Chief Postmaster General; and
(c) concurrence of the CIFA.
The complete proposal, duly approved by the Chief Postmaster General and concurred in by the CIFA, shall reach the Postal Directorate on or before 3t.o7 .2026.
9. Templates and Proformas
To ensure uniformity in assessment and preparation of proposals, detailed templates, evaluation formats and prescribed proformas are enclosed with this circular. All Circles shall strictly follow the prescribed formats while submitting their proposals.
This issues with the approval of the Secretary (Posts).
Enclosed: - As above. (Du t Mudgal) DDG (Establishment)
Enclosure: -
(i) Zip file containing template user guide, draft format for Sub-Division. (ia) Zip file containing template user guide, draft format for Division. (iai) Zip file containing user guide, template, draft format for region.
Copy to:
1. Sr. PPS to Secretary (Posts)/Director General (PS)
2. Sr. PPS to Members (Postal Services Board)/PPS to all Members of Postal Services Boa rd
3. Directoq RAKNPAI)S&FA
4. Sr. DDG (Vigilance)/Sr. DDG (PAF)/CGM (Parcel)lCCM(PLI) 5. Secretary, Postal Services Boa rd/DDc(Personnel)/All Deputy Directors General (through Office Notice Board)
6. Director (Staff )/Oirectors of all PTCs
7 . ADG (SPG/SPN)
B. SO, Guard File