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The India BPO Promotion Scheme (IBPS) , envisaged under Digital India program, seeks to incentivize establishment of 48,300 seats in respect of BPO/ITES operations across India. STPI is the nodal agency of this scheme under the Ministry of Electronics and Information Technology. Director General STPI Omkar Rai has announced to launch 48,000 such seats across the country, with a target employment of 72,450 in the sector.

The government provides financial support of up to Rs 1 lakh per seat under two plans -- India BPO Promotion Scheme and North East BPO Promotion Scheme. The Scheme is distributed among each State in proportion of State's population with an outlay of Rs. 493 Crore.

Salient Features:

  1. Financial Support: Up to 50% of expenditure incurred on BPO/ITES operations towards capital expenditure (CAPEX) and/or operational expenditure (OPEX) on admissible items, subject to an upper ceiling of Rs. 1 Lakh/Seat.
  2. Special incentives toward employment of women & specially enabled persons.
  3. Incentive for generating employment beyond target & wider dispersal within state including rural areas.
  4. Encouragement for local entrepreneurs. Special consideration for Hilly states of HP, J&K and UK.
  5. As per scheme, Initially operations in tier II-III cities would be comparatively small, but would gradually expand.The scheme has herald an IT revolution in smaller cities and the Software Technology Parks of Indiahas already launched 1,000 seats in Patna. Tata Consultancy Services Ltd (TCS) has started 1,000 seats BPO in Patna which is first of its kind in Bihar and targets employing youth from cities like Muzaffarpur and Dalsinghsarai in the state.

This scheme taking certain IT processes from metros to smaller places and is generating employment in small cities.

This scheme has potential to create employment opportunities of around 1.5 lakh direct jobs considering three shift operations. It may also create good number of indirect jobs.

India BPO Promotion Scheme (IBPS)
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Published on Saturday May 30 2020
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