India to subsidize business process outsourcing activities in North East

Posted on February 2, 2015  /  1 Comments

The states in the North East of India have among the highest rates of English literacy in India. They also have very high unemployment rates. Now the government is planning to conduct least-cost subsidy auctions for those willing to set up BPOs in those states.

As per the plan, the government is planning to set up BPOs, with a total of 5,000 seats, in Assam, Manipur, Tripura, Meghalaya, Nagaland, Arunachal Pradesh and Mizoram.

The government has set aside a budget of Rs 50 crore for the projects, which would be set up under private-public partnership.

“The government has given its approval three days ago. Now, we are in the process of creating the RFPs. We have to identify the partner agencies which will actually run those call centres and BPO operations, based on a competitive bidding,” said Omkar Rai, the director-general of STPI.

“It will be based on the viability gap funding per seat. So the bidder who provides the lowest funding will be the winner,” he said.


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