Govt approves about 9,020 seats under BPO promotion scheme

The government has given in-principle approval to about 9,020 seats under the business process outsourcing (BPO) promotion scheme to set up such units in smaller towns.

The Centre had approved India BPO Promotion Scheme (IBPS) for promoting of BPO/ITeS operations across the country with an outlay of about Rs 493 crore. As part of the scheme, about 48,300 seats have been planned with distribution across states and Union Territories based on population percentage as per census 2011 excluding metro cities.

A senior official of the IT Ministry said Software Technology Parks of India (STPI) has given in-principle approval for 9,020 seats and is expected to finalise 3,000 more in third round of bidding.

Over 50 companies will set up BPO operations at 60 locations in 18 states and two union territories, including Varanasi, Patna, Amravati, Dhule, Siliguri, Cuttak and Muzaffarpur, he added.

The scheme has got a lukewarm response from bigger companies. Barring TCS, none have shown interest in setting up their units.

An official had earlier told Business Standard that the lukewarm response towards the scheme was primarily because of the clause which did not allow companies to expand, so big companies were not very interested in the scheme.