The association office bearers said that a joint action committee would be formed and a memorandum submitted to the Centre to reconsider its decision, which, they said, would be detrimental to the interests of the courier industry and throw at least 15 lakh persons out of jobs.

Their major grouses are the proposed restriction on carrying letters only above 500 grams, high registration and renewal fees of Rs 10 lakh and Rs 5 lakh respectively per annum and 10 per cent of gross revenue to be paid as universal service obligation.

Association President S Ahamed Meeran and Vice-President M Kannan said more than 80 per cent of courier companies dealt with letters, which were less than 500 grams.

The proposed amendment would cripple the courier industry, they said. The industry was a highly labour intensive one and this move would throw lakhs of people out of work, they said.

Kannan and finance advisor to the association Venkataraman said the industry contributed Rs 500 crore (Rs 5 billion) as service tax annually, besides income tax of over Rs 200 crore (Rs 2 billion) per annum.

Kannan and Meeran said the industry had nothing against a regulation to conduct the business. But it should be enacted on the basis of consultations.

They said the association also proposed to call on Union Communication Minister Dayanidhi Maran to find a solution to the issue, besides meeting their clients and members of the public to seek support.

Meanwhile, environmental NGO, Exnora International's founder M B Nirmal extended his group's support to the association on the issue.

He described the government's move as a retrograde step, especially when all other sector of the economy were being opened up for private investment.