A company in India that provides delivery services to post offices will pay up $100 crore to its state government to help it pay for its services, according to the New York Post.
The state of Maharashtra, a big hub for mail delivery, is a prime target for outsourcing in India as the economy has suffered the biggest drop in GDP since 2007.
The post office, which is the country’s largest, has a budget deficit of about $6 billion and has to borrow from local governments.
The company has been unable to pay back its loans to the states, and has said it will have to sell its shares in the company.
The Post, which operates in more than 200 cities, has been in talks with the state government about a loan.
In its latest earnings report, the Post said it was in talks for an additional $100 million to $150 million from the state of Madhya Pradesh.
The company is one of the biggest post offices in India, with a network of 1,000 post offices and nearly 1,600 delivery routes.
The delivery companies earn a portion of their profits through fees that are passed on to customers.
The companies say that the fee structure helps the government provide services.
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