Context

Outsourcing now is an increasingly popular management tool widespread among organizations across the world. Outsourcing enables companies in developed countries to conduct business operations in a more cost-efficient and focused manner by tapping into the system of highly skilled workers in developing countries, commanding wages that are lower than those in developed countries.

The government of Odisha identifies BPO/ITeS industry as a driving force for inclusive growth and creating employment opportunities across the state. The policy aims to attract BPO industries by enabling the best investment environment so that they operate their enterprises productively accruing benefits to the state in terms of employment and revenue.

Applicability and Obligation of Policy

The Policy shall be applicable to BPO/ITeS units subject to the following conditions:

• The activities as listed in definition of BPO shall be eligible for benefits/incentives under this policy
• The policy shall be applicable to eligible BPO/ITeS unit(s) in Odisha with a minimum number of 25 (Twenty-Five) seats and above as mentioned against the respective class of cities/towns
• Any BPO/ITeS units and companies availing subsidies/benefits/exemptions applicable under this Odisha BPO Policy 2021 can not avail similar such subsidies/benefits/exemptions laid down in any other policy under the government of Odisha and vice versa
• Entities availing benefits from Govt of India under the India BPO Promotion Scheme (IBPS) shall not be eligible for any incentives/benefits under this Policy for the same unit.
• The disbursement of incentives will be based on performance i.e., generation of new employment by the BPO/ITeS units after commencement of the Odisha BPO Policy-2021. The BPO/ITeS Company may set up its operation in a single or multiple location in the state, however, the multiple locations/units of the BPO/ITeS Company will be treated as a single unit.
• The BPO unit must commit and provide guarantee to operate for a minimum period of 03 (three) years from commencement of operations for availing all incentives under this policy
• BPO/ITeS units seeking to avail of financial support under this scheme, shall be under an obligation not to claim similar financial support under any other scheme of the state government concerned.
• The Odisha BPO Policy 2021 shall be in operation for 5 years from the date of its gazette notification or till substituted by another policy
• Special upfront negotiated package of incentives and concessions will be extended on a case-to-case basis for large investments by large BPO/ITeS companies, and MNCs.

Regulatory Approvals

• The BPO units shall be exempted from the purview of sections 9,10,11 and 23 of Odisha Shops and Commercial Establishment Act-1956
• The BPO units shall be declared as public utility services for the purpose of applications of provisions under Chapter V of the I.D Act 1947 as per IPR 2015 and subsequent notifications to be issued by the Labor & ESI Department, Government of Odisha from time to time
• General permission for three-shift operations with women working in the night for BPO/ITeS units will be granted subject to the condition that the BPO unit(s) shall self-certify and ensure that required precautions are being taken in respect of the safety and security of employees especially women as prescribed by Government from time to time.

Policy Implementation and Monitoring

• An Apex Committee chaired by Chief Secretary will be formed to monitor the policy implementation, project monitoring, and grievance redressal for approval of incentives.
• The implementation of the policy will be periodically reviewed by E&IT Department for necessary facilitation and mid-course correction wherever necessary.
• The Odisha Computer Applications Centre (OCAC) would be the Nodal Agency for the implementation of the BPO Policy-2021. The OCAC would be responsible for monitoring the progress of various activities under this policy
• OCAC through it’s Project Implementation Unit (PIU)/Project Management Unit (PMU) would be responsible for operationalizing the Odisha BPO Policy 2021, including closely examining the various incentives/concessions available under the policy for eligible units and would provide all information to the Apex committee to take necessary decisions through E&IT Department.
• The disbursement of the incentives to the BPO units shall be made by the implementing agency in accordance with the chronological order of approved claims

Policy incentives

Sl No	Incentive Name	Incentive Particulars as per Odisha BPO Policy 2022
1	Subsidy on Capital Investment	Minimum seats for eligibility urban area in Bhubaneswar (under Bhubaneswar Municipal Corporation) and Cuttack (under Cuttack Municipal Corporation) with the eligibility of a minimum of 200 seats, the Capital investment subsidy per seat is 1.05 lakh Rest areas in any other location in Odisha with the eligibility of a minimum of 25 seats, the Capital investment subsidy per seat is 1.25 lakh Additional 10% Capital Investment Subsidy per seat would be provided in case the employee is a woman or a person with disabilities
		The Capital Investment Subsidy would be limited to 2000 seats per BPO unit or INR 20 Crores whichever is lower. The limit is applicable for all the locations taken together i.e., for all the units of a multi-locational BPO/ITeS company in Odisha
2	State GST Reimbursement	BPO/lTeS units shall be eligible for Reimbursement of hundred percent (100%) of State GST (SGST) paid for a period of maximum five (5) years
3	Interest Subsidy Reimbursement	An interest subsidy @ 5% per annum for a period of 5 years, subject to maximum limit of INR 1 Crore per BPO unit
4	Power Incentives	The units will be provided subsidy in power bill by reimbursing at 30% limited to INR 30 lakhs per unit in 5 years Reimbursement of 75% of cost of Energy Audit subject to a cap of INR 2 lakhs
5	Human Capital Investment Subsidy	INR 3000 per recruited employee per month for training for a period of three(03) months with a maximum limit of INR 15 lakhs per annum The subsidy would be applicable only after the submission of NOC from the Skill Development and Technical Education Department (SD & TE)
6	Stamp Duty (as per the latest ICT Policy)	Government will extend exemption on stamp duty on lease/sale agreement of land or built-up space by Government/IDCO and other government agencies as per the provision of IPR (As per ICT Policy 2014)
7	ESl/ EPF Reimbursement	Employees Provident Fund (EPF) of the employees who are domicile of Odisha for a period of a maximum of three (03) years in total, from the date of commencement of operation.
8	Internet Connectivity Incentive	BPO/lTeS unit shall be entitled for reimbursement of 50% of internet bandwidth/ leased line charges subject to a maximum of INR 2 lakhs per year per unit for a maximum period of 05 (five) years
9	Subsidy on Rent of Built-up Space	INR 20 per Sq. ft. per month of the carpet area occupied by the firm subject to a maximum of 75% of the actual rate. The overall limit of this subsidy shall be limited to INR. 50 (Fifty) lakhs for a total period of five years Maximum space for each employee is limited to 40 sqft. for calculation.
10	BPO Parks	Greenfield BPO Parks will be entitled for 25% Capital Subsidy of FCI ( fixed capital investment) in buildings and infrastructure facilities
11	Marketing Support	Reimbursement at 50% of the cost incurred for participating in exhibitions/trade - INR 3 lakhs per unit maximum for domestic events - INR 6 lakhs per unit maximum for international events
		Industry Associations can also avail of the facility of reimbursement at 50% for participating in exhibition/trade event/promotion activities, limited to INR 10 Lakhs with a minimum of 5 BPO/ITeS units BPO/ITeS unit can avail of this reimbursement facility only twice
12	Quality Certification	75% of the expenses incurred for obtaining CMM, CMMi, PCMM, COPC, eSCM, ISO 9001, or equivalent/Higher certifications shall be reimbursed subject to a limit of INR. 10 lakhs