Govt mulls scheme to promote BPOs across the country

NEW DELHI: The Centre is in the process of finalising a policy to promote BPO activities in the country after implementing a scheme to incentivise these operations in the Northeast, claiming it would be a “game changer”.

A policy on Business Process Outsourcing (BPO) operations in the country “is in the final stages of finalisation,” Communications and IT Minister Ravi Shankar Prasad said in reply to a supplementary during Question Hour in Rajya Sabha.

“The proposed scheme would lay down the appropriate guidelines in regard to eligibility, location, nature of support to the industry and other related aspects and would be operationalised after obtaining necessary approvals of the competent authority,” he said.

Stating that the policy was aimed at creating employment opportunities and growth of the IT-ITES industry, Prasad said the Centre and states must work together to make the scheme successful, as the success of BPO industries called for a lot of infrastructural support like land and electricity.

“BPO is going to generate employment in all small cities…BPO is a game changer in small cities,” he said, appealing to all MPs and state governments to chip in with their support for the plan.

The minister said all states would have to participate actively to make the scheme a success, particularly on issues like land allocation for setting up BPOs and providing them with power connectivity.

Under the Digital India Programme, government had approved a North East BPO Promotion Scheme (NEBPS) to incentivise BPO operations in the region by establishing 5,000 seats with capital support in the form of viability gap funding.

Software Technology Parks of India, an autonomous society under the Department of Electronics and Information Technology, has been designated as the nodal agency for the implementation of NEBPS.

The telecom minister said that around 30 lakh people were directly and another one crore indirectly employed in the country’s BPO industry.

Replying to supplementaries, Prasad said while in North East, the incentive that would be given by the Centre was Rs one lakh per seat, while for the regions other than Northeast, “the policy is being finalised.”

“Centre and states have to work together and walk together. Initiatives of the Centre will have to be matched with initiatives of states,” he said.

Taking up another issue, the Minister said the government was “committed” to restore the health of BSNL but wondered how the profit-making company turned into a loss-making in recent past.