Indian BPO Promotion Scheme (IBPS)

Indian BPO Unit Promotion Scheme (IBPS) Digital India in Rural Area Full Form, Eligibility Criteria, Application Form Process Online, Financial Assistance Help, UPSC, PIB

Technological advancement and creating job opportunities for the Indian youth, in IT sector, were two important aspects that the Modi government addressed at the beginning of their rule in 2014. Back then Prime Minister Modi launched a host of schemes, which targeted the development of the common people of the nation. It was the only way to ensure the progress of our country. To offer a fresh boost to Indian IT industry, and to spread internet connectivity and technology, he launched Digital India Movement. The Indian BPO Promotion Scheme is also developed as one of the branches of Digital India movement.

Indian BPO Unit Promotion Scheme (IBPS)

Launch details of the scheme

The central government made new announcements in respect to the Indian BPO Promotion Scheme on 19th June, 2018. The scheme will be designed and implemented under the watchful eyes of Electronics and Information Technology Ministry of India. The announcement was made by Minister Ravi Shankar Prasad. This scheme will offer a series of benefits to those who are willing to open a company in BPO and ITES sector. All interested candidates can apply for this project by the end of 31st March, 2019.

Key features

  1. Development of BPO and IT sector – To bring about new development in the IT and BPO industry, the central government has to encourage people to open offices, where such services will be offered. With this project, a new boost will be offered to entrepreneurs who want to start a venture in this field.
  2. Creation of job opportunities – With the successful implementation of this project, the central government will be able to offer as many as 2 lakh new job opportunities in the IT and BPO sector.
  3. Job in own cities – The IT minister said that the main aim of this project is not only to create new job opportunities. It will ensure that BPOs come up in smaller cities as well. It will eliminate the need of people migrating to big cities for work.
  4. Number of seats proposed – In the beginning, the Ministry had set out with a target of creating around 48,300. Now, the target has been hiked to a whopping 1 lakh with this new announcement. Till date, the central government has succeeded in allocating 31,732 seats in tier II and tier III towns.
  5. Creation of Data center – It was announced by the minister that a new National Data Center will be erected in the city of Bhopal. Once complete, it will become the biggest data center of the nation. As of now, four data centers are operational in Pune, Delhi, Hyderabad, and Bhubaneswar.
  6. Financial assistance for office owners – Under this scheme, any person who established an office in the BPO or ITES sector will receive a one-time financial assistance from the central government. He/she will receive 50% of the total expenditure that is incurred in starting the office. But the celling of this financial will be 1 lakh for every seat.
  7. Opportunity to receive special incentives – If the office owner offers jobs to women and people with physical disability, then the scheme will reward this act with additional 5% and 2% incentive respectively. In that case, 50% of the total number of employees should be women, and at least 4% of total workers must be disabled.
  8. Additional incentive for better result generation – In case, the BPO owner is successful in creating more job opportunities, he/she will receive more incentives from the central government, under this scheme. In this case, the office owner will receive 5% to 10% incentives.
  9. Encouragement to native entrepreneurs – To ensure that people of each state remain in that area, the central government will put stress on encouraging business owners, located in that respective state, to open new BPOs.
  10. Special considerations for mountainous regions – It is a known fact that job opportunities for educated and trained youth, in mountainous or hilly areas is not adequate. This forces thousands of youngsters to migrate to the plains in search of proper jobs. The central government wants to stop this trend with creation of vocational opportunities in hilly areas. For this, all business owners, interested in opening BPOs in mountainous areas will receive special packages. This offer is only for north-eastern hilly areas, and states like Uttarakhand, Himachal Pradesh and Jammu & Kashmir.

Eligibility for the scheme

  1. Type of company – It has been mentioned that only private limited, limited and single-ownership companies will be able to apply for this project.
  2. Number of employees – To get the financial assistance under this scheme, each company must have employee strength of at least 100.
  3. Minimum operation period – The companies must be able to continue the office for at least three continuous years.
  4. Minimum turnover of the company – It has been mentioned in the draft scheme that the turnover of each applying company, for previous three years, must not be less than 2 crores. Only companies with an employee strength of 50, and a hilly location can get the benefits of this scheme, even if they have 1 crore turnover.
  5. Not for all states – The scheme stresses on the creation of BPO companies in smaller towns. Thus, cities like Pune, Bengaluru, Mumbai, Chennai, Kolkata, Hyderabad and NCR will have been kept out of this scheme. Only those companies, located in smaller cities will be able to get the financial and other benefits.

This scheme will create several direct and indirect job opportunities. It will also allow the business owners and central ministry to concentrate on smaller cities. With adequate jobs in these areas, the trained and educated youth will no longer feel the need to migrate to these areas. These new BPOs will also bring about overall financial development in that town as well. 

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