TN lures BPOs by giving subsidies

Wants Cos to set up operations in rural areas

Published: 06th June 2012 09:50 AM  |   Last Updated: 06th June 2012 10:39 AM   |  A+A-

Keeping up its promise to create jobs in the Information Technology Enabled Services (ITES) sector in villages, the AIADMK Government has unveiled an Enhanced Restructured Rural BPO Policy to lure companies to set up operations in rural Tamil Nadu.

The policy, drafted by the Information Technology Department, offers incentives to the Business Process Outsourcing (BPO) industry to set footprint in villages. Presently only one Rural BPO is functioning in Krishnagiri district. Companies which set up their Rural BPO unit in village panchayats will be granted capital subsidy, training subsidy and transport facility.

Besides, they would be exempted from paying security deposit, Earnest Money Deposit and the cost of tender at the time of bidding.

“A capital subsidy of 20 per cent would be provided on capital investments as cost of hardware, equipment etc; subject to a maximum of Rs 5 lakh to any Rural BPO unit that has been directly employing a minimum of 50 trained seats (persons) in the unit,” the policy notified by the IT Secretary S K Prabakar said.

The capital subsidy will be back-ended in three equal instalments at the end of each year.

The Government has decided to share the cost of training of staff by providing Rs 1,500 per month per person for three months as training subsidy. A unit engaging 50 persons will receive Rs 2.25 lakh as training subsidy for three months.

According to an IT Department official, to ensure that the BPOs do not misuse the subsidy it has been decided to disburse the amount only after one year (three months training plus nine months of continuous employment).

“Otherwise, some BPOs might terminate the staff after receiving the subsidy,” the official explained.

The training would be provided in coordination with the Information and Communication Technology (ICT) Academy of Tamil Nadu. The Government would also ensure that necessary public transport was made available for the Rural BPO units.

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