Question : BPOs

(a) whether the Government is implementing India BPO Promotion Scheme through STPI and is providing Capital Incentive Scheme for new BPO projects across the country;
(b) if so, the details thereof and the new BPO projects, which have been given financial assistance under Capital Incentive Scheme during each of the last two years and the current year, State-wise including Andhra Pradesh;
(c) whether in the wake of automation in the IT Sector, BPO industries are going to face job cuts in the coming years; and
(d) if so, the details thereof and the measures the Government have taken to protect the BPO industry?

Answer given by the minister

(a) and (b): Under Digital India programme, the Government has approved India BPO Promotion Scheme (IBPS) for promotion of BPO/ITES operations across the country, with an outlay of about ?493 crore with Capital and various Incentive Support of upto ?1 lakh/seat for employment generation and balanced regional growth of IT/ITES sector across the country. About 48,300 seats have been planned with distribution across State(s)/UT(s) including the State of Andhra Pradesh based on population percentage as per Census 2011, excluding metro cities including their urban agglomeration viz. Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune and States of North East Region (NER).The state-wise allocation of BPO/ITES seats is at Annexure. For selection of companies under IBPS, online bidding, through Request For Proposal (RFP) document was published by implementing agency i.e. Software Technology Parks of India (STPI) on 30.04.2016 with last date of bid submission as 08.07.2016. The details of the scheme are available at www.deity.gov.in/ibps

(c) and (d): The IT-BPO industry continues to be a net hirer. The technology automation has not replaced labor, but improved productivity and provided workers the time to focus on other tasks involving complex decision making and social interactions. Rather, the adoption of new technology has created jobs, increased productivity, raised earnings, and increased the demand for skilled labor.
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Annexure

IBPS BPO Seats Distribution across State(s)/UT(s) based on population % as per Census 2011
State/UT Population Population
% Seats by population % Seats Rounded-off to nearest hundred
Andhra Pradesh 493,86,799 4.56 2,189 2200
Bihar 1040,99,452 9.61 4,615 4600
Chhattisgarh 255,45,198 2.36 1,132 1100
Goa 14,58,545 0.13 65 100
Gujarat 604,39,692 5.58 2,679 2700
Haryana* 230,44,841 2.13 1,022 1000
Himachal Pradesh 68,64,602 0.63 304 300
Jammu & Kashmir 125,41,302 1.16 556 600
Jharkhand 329,88,134 3.05 1,462 1500
Karnataka* 525,95,898 4.86 2,333 2300
Kerala 334,06,061 3.09 1,481 1500
Madhya Pradesh 726,26,809 6.71 3,219 3200
Maharashtra* 889,10,077 8.21 3,941 3900
Orrisa 419,74,218 3.88 1,861 1900
Punjab 277,43,338 2.56 1,230 1200
Rajasthan 685,48,437 6.33 3,039 3000
Telangana* 274,44,644 2.53 1,214 1200
Tamilnadu* 634,51,020 5.86 2,813 2800
Uttar Pradesh* 1991,69,960 18.39 8,827 8800
Uttarakhand 100,86,292 0.93 447 400
West Bengal* 771,63,579 7.13 3,422 3400
Andaman & Nicobar Island 3,80,581 0.04 17 100
Chandigarh 10,55,450 0.10 47 100
Dadra & Nagar Haveli 3,43,709 0.03 15 100
Daman & Diu 2,42,911 0.02 11 100
Lakshadweep 64,429 0.01 3 100
Puducherry 12,47,953 0.12 55 100
Total 10828,23,931 100.00 48,000 48,300

Note:
1. Total 48,000 seats have been distributed based on population percentage among States/UTsas per Census 2011, and then rounded-off to nearest 100.
2. Minimum seats support for a State/UT = 100
3. *Population of all the States of North East Region and Urban Agglomeration Population of certain cities [Bengaluru, Chennai, Delhi-NCR (Gurgaon, Faridabad, Noida), Hyderabad, Kolkata, Mumbai, Pune] is subtracted from the respective State''s Population and subsequently from overall population of Country.

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