Budding entrepreneurs will not be able to cash in on rural business process outsourcing (BPO) opportunities, if the norms, in the government’s proposed policy on the same is any indicator.

“Earlier, the idea was to give chance to emerging entrepreneurs, who want to go back to their native places and start a BPO on their own with government support. But, that is unlikely now,” a senior official said.

Eligibility An internal note seen by BusinessLine said, “Only those companies that are registered under the Companies Act and have recorded a minimum average annual turnover of ₹5 crore during the last three years would be eligible to submit an expression of interest.”

This would come in the way of the government’s idea of giving young entrepreneurs a chance to set up centres in rural areas, the official said.

The scheme would benefit companies which are established and already have a presence in rural areas such as Delhi-based B2R, Chennai-based Desicrew and Vindhya, and Bengaluru-based Rural Shores, and Hyderabad-based Tata Business Support Services (TBSS).

Senior officials “There are many team leaders or senior officials in the metros who want to move back to their towns and start their own BPOs. But, with no help from the government, they may not do that now,” the official added.

Earlier, the government’s plan was to involve such people for setting up BPOs in the rural areas, as they know the ropes and can employ locals.

However, the note said, the government can only ‘hand hold’ the new enterprises.

According to the proposed incentives, the government has planned a scheme outlay of ₹500 crore for this project and will provide up to 50 per cent of expenditure incurred on admissible items with a cap of ₹1 lakh per seat, whichever is lower.

The duration of the scheme will be up to the 12th Plan (till March 2017). The government will invite expression of interest from Indian companies that are willing to establish BOP operations anywhere in the country.

Final consultation “The government proposes to incentivise the establishment of around 45,000 seats across the country,” the note said, adding that final consultation will be taken with various stakeholders including the State governments.

It also highlighted that capital support or incentives would be given to BPO operations across the country, excluding Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Pune, Hyderabad and North Eastern region.

According to TBSS, such scheme will help companies focused around rural BPOs and entrepreneurs who want to work along.

“BPO is a highly transactional business and needs certain scale or model to run the services, otherwise it is not sustainableMany BPOs are at higher level today after struggling a lot,” Srinivas Koppolu, Managing Director and CEO, TBSS, said.

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