News : Government Earmarks Rs498 cr Incentive Under BPO Scheme
New Delhi, India, May 29, 2015 -- The government will offer financial incentives to companies setting up call centers in tier 2 and tier 3 cities and has earmarked Rs 498 crore under a new BPO scheme, which is expected to create around 1.5 lakh direct jobs.
The BPO scheme will take wings after state governments submit their inputs, Telecom Minister Ravi Shankar Prasad said while holding a meeting with state IT ministers and principal secretaries on Friday.
"A BPO empowers area where it is opened. There are lot of international and domestic work that can be done at BPOs in India. Incentive is for total of 48,000 seats across will be given on per seat basis," Prasad said.
The seats will be divided across states in ratio of their census population. The IT sector's profile is limited to only a few cities, even when about 60% of BPO workforce in the country comes from below tier 1 city. It will be convenient for such youth if they get job close to their home, therefore the IT sector should spread across smaller towns in the country, the minister added.
As the first step, Expression of Interests will be floated under the scheme, which will be promoted and marketed with a budget of Rs 10 crore, IT secretary RS Sharma said.
While Central government will do the funding, state government will have to play an important role in providing assistance to these BPOs. State government departments would be able to outsource their work to call centre, as one of the options to help them.
The government hopes that big e-commerce companies and NGOs, operating without government assistance, will be among several beneficiaries of the scheme.
The government will give 50% of capital expenditure incurred or Rs 1 lakh per seat whichever is less under the scheme, which is part of government's digital inclusion programme.
"It will create 1.46 lakh jobs directly. Broadly, it is estimated to benefit close to 5 lakh people," Sharma added. The duration of scheme is till March 31, 2017.
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, June 1, 2015