Tamil Nadu Government unveils enhanced rural BPO policy

June 6, 2012: Tamil Nadu government unveiled its Rural BPO policy by allowing more incentives to the existing players/entrepreneurs in the industry to set up BPO units in rural areas. The government put in place an Enhanced Rural BPO policy to attract more employers to set up their BPO unit in any Tamil Nadu panchayat.

According to the revised policy, Government would provide subsidy of up to Rs 5 lacs on capital investment compared to Rs 3 lacs as per Rural BPO policy, 2010. The subsidy will be available to those who employ directly 50 trained employees in rural unit.

The enhanced policy also provide subsidy on training and transport services. The IT department will act as a facilitator to help BPO companies find suitable hub to start the operations. The ICT academy will provide the necessary training to the prospective candidates as per the industry requirement. The academy is also entrusted to conduct IT related course for rural BPO employees.

The successful operation of the rural BPO units in Sanasandiram Chennathur Panchayat of Hosur block 5 years back also led to the government announcing this enhance rural bpo policy. As per the policy, the IT department will exempt BPO companies from duties like security deposit, earnest money deposit (EMD) and cost of tender for starting operations in any rural panchayat.

The enhanced policy is an attempt to bring out development in tier II and tier III cities as well as villages of the state. The presence of BPO companies is now mostly limited to Chennai and nearby hub. The policy was imperative for the state to encourage the companies to come up in rural areas as well.

Experienced personnel from BPO industry feels that the industry should go behind the talent and it make no difference whether it is operating form Chennai or from rural areas. Analysts too believe that this would be major move for the companies by which they can reduce operational cost to some extent and if trained, would avail quality workforce.

The benefit of promoting BPO in rural areas is that it will raise the literacy rate in the villages. People will be inclined to educate themselves and become competitive and it could potentially change the lifestyle of the rural areas. A transformation in rural culture can be forecasted with the policy implementation. Educational institutes in rural areas will be benefitted as their faculty and students will get a global exposure and experience and opportunity to interact with the industry too.

In addition to the policy, the state also approved to carry out block level awareness program in panchayat regarding the potential of BPO operations in rural areas.

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