India BPO promotion scheme

• The Union government is planning to expand its BPO promotion scheme under the Digital India initiative, it will more than double the number of seats under the scheme.
• India BPO Promotion scheme (IBPS) is aimed at creating employment opportunities and promoting BPO operations across the country to secure balanced regional growth of IT/ITES industry.
• The scheme provides capital support along with special incentives upto Rs 1 lakh/seat, and the initial plan was to support about 48,300 seats.
• Government will now increase the capacity under the scheme to one lakh seats from the current 48,000 seats.

About India BPO Promotion scheme (IBPS):

• 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.

Salient Features:

• 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.

By: Vishal