- The Union government is planning to expand its BPO promotion scheme under the Digital India initiative. The government has proposed to more than double the number of seats under the scheme.
- The India BPO Promotion Scheme (IBPS), envisaged under Digital India Programme, seeks to incentivize establishment of 48,300 seats in respect of BPO/ITES operations across the country.
- It is distributed among each State in proportion of State’s population with an outlay of Rs. 493 Crore. This would help in capacity building in smaller cities in terms of infra & manpower and would become basis for next wave of IT/ITES led growth.
- 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.
- 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.
- Special incentives toward employment of women & specially enabled persons.
- Incentive for generating employment beyond target & wider dispersal within state including rural areas.
- Encouragement for local entrepreneurs.
- Special consideration for Hilly states of HP, J&K and UK.