New Delhi: In a new move, the government is toying with the idea of raising resources from the realty assets of the postal department. For the purpose, it will transfer the department's assets, which can be commercially exploited, to a new body called the Postal Development Corporation (PDC), a corporate entity spun off from the department of posts (DoP), reported The Economic Times.

The attempt is to transform the loss-making postal department, which is supported currently by massive subsidy infusion from the government, into a self-sustaining entity.

For the purpose of commercial development, the postal department has already identified 1,800 chunks of real estate land spread across urban centers, including the four metros. The land will be developed on a JV basis as is being done in the case of National Textile Corporation's (NTC) properties in Mumbai.

The communications and IT ministry will circulate a Cabinet note on this issue to other ministries next week. "PDC will be an independent body. It will have all financial powers and will be authorized to take all steps which can help us raise revenues from the realty we hold," said IMG Khan, Secretary, and Director-General, India Post.

While confirming the development another top official said, "PDC will be a corporate set-up on the lines of state-owned telcos such as BSNL and it will enter into public-private partnerships to develop the postal department's real estate assets across the country."

So, after the plan is implemented, the post offices will share buildings with big commercial complexes and malls. Properties in Nariman Point in Mumbai and Connaught Place and Chanakyapuri in New Delhi are likely to be the first to be commercially developed.

The fact is that, user charges cover only 78 percent of the total cost in India postal services, causing continuing loss for the department. Sources said that after being set up, the PDC would look at emulating the model adopted by NTC. This implies that the postal department too can raise several thousand crores as is being done by NTC.