A new Central Government-sponsored India BPO promotion scheme aims at bringing in new entrepreneurs into the field to provide employment in Tier II and III cities.
To promote the scheme of the Ministry of Communications and IT, STPI held a road show on Tuesday, at which about 35 BPO entrepreneurs turned up, gave suggestions and voiced their concerns also.
STPI Joint Director and Officer-in-Charge M.P. Dubey said the new scheme was meant to be run by new companies set up under the Companies Act taking new employees. Based on population, Andhra Pradesh got 2,200 seats and at the rate of Rs.1 lakh for seat the total infrastructure support to be extended would be Rs. 22 crore. There are incentives for setting up units outside the capital and diversified and inclusive employment. A company can bid for a maximum of 800 seats. Citing high cost of doing business (25 per cent), getting working capital, cost of attrition and training, president of Vizag Development Council and CEO of Symbiosys Technologies O. Naresh Kumar said for half the seats STPI should bring in business by roping in an MNC. For each seat against a capital of Rs.1 lakh being given, Rs.2.5 lakh has to be invested for a year to run the units, he pointed out. Instead of private limited company, even a limited liability company should be allowed, Mr. Naresh Kumar suggested. He, however, wanted 5,000 seats for Andhra Pradesh.
Participants pointed out the elaborate procedures and commitment and timelines to be met and the time lag in the release of capital support promised.
Ironically, one of the views emerged was that it suited non-IT players better.
Last date for submission of written queries for clarifications is on the website ibps@stpi.in is May 13 and the last date for online bids is May 31.
