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Home => Government => Karnataka State Govt BPO Policy
Destination Karnataka
- The Government of Karnataka has demonstrated a strong commitment to catalyse the growth of IT industry in the state. Several attractive incentives and concessions offered resulted in Bangalore being ranked as the 4th best technological hub in the world as per the UNDP.
- In its continuing endeavour to use technology to benefit its people and to promote the BPO industry in the State, this policy offers several incentives and concessions for companies engaged in BPO activities and related infrastructure.
- A BPO company under this policy could be a company that provides services in business processes and services performed or provided from a location different to that of their users or beneficiaries and are delivered over Telecom Networks and / or the Internet. The BPO Services typically include the following:
- Customer interaction services like Call Centers ; Contact Centers, e-mail Help Desks, Information Dispensing, Telemarketing etc.,
- Medical Transcription
- Back-Office processing, Revenue Accounting, other ancillary operations.
- Insurance Claims Processing.
- Legal Databases.
- Digital Content Development / Animation
- Data Processing.
- Engineering and design.
- Remote Maintenance.
- Support Centres.
- Payroll/HR Services.
- Web-site development & maintenance.
- Data digitization / GIS.
- Distance Online Education.
- Financial & Accounting Services.
- Network consulting and management.
- e-commerce.
- Research ( Market Research and Scientific Research )
- Bio informatics services
Concession in Stamp Duty & Registration charges :
- The BPO companies are exempted from the payment of 50% Stamp Duty & Registration charges on execution of Lease, lease-cum-sale or Sale deeds for the establishment of their venture. This rebate on Stamp Duty / Registration charges is also applicable to the existing BPO companies expanding or modernizing their activities with additional investment and employment generation.
- The tiny & small scale industries that establish outside the city limits of Bangalore or those taking up expansion, modernization & diversification with additional employment generation for BPO activities will be eligible for 100% exemption from payment of stamp duty & registration charges on all types of deeds executed in connection with the venture.
- The Mega Projects in the BPO Sector which invest more than Rs.50.00 crores or provide continuous employment for two years to over 5,000 persons in Bangalore or 1,000 persons in cities like Mysore, Udupi, Mangalore & Hubli-Dharwad or 500 in other parts of the state shall be eligible for 100% exemption from payment of stamp duty & registration charges on execution of Lease , Lease-cum-Sale and Sale Deeds on the first sale of land as well as lease of built up space in IT & BPO Parks. The existing Mega Projects under taking an expansion / modernisation involving fresh investment and additional employment generation will be eligible for 50% exemption from payment of stamp duty & registration charges on execution of Lease, Lease-cum-Sale or Sale Deeds.
- Fiscal Incentives:
The BPO industry will be exempted from payment of Entry Tax on all capital goods required for implementation of the projects for a period of three years from the date of commencement of implementation.
- Rebates:
The Mega industries which establish their operation outside the limits of Bangalore Metropolitan Region Development Authority [BMRDA] will be encouraged by providing a one time investment subsidy linked with their employment generation. An Investment subsidy of 20% upto a ceiling limit of Rs.1.00 crore will be provided to such industries for a period of one year from the date of issue of this policy. This rebate will be applicable to those industries which sustain prescribed the employment for a minimum period of two years.
- Waiver of conversion fee:
The BPO units employing100 persons and above outside the BMRDA limits are exempted from payment of conversion fee in respect of converting agricultural land for non-agricultural purposes upto a limit of 0.30 acres for every 100 personnel employed. The Tiny /SSI in the BPO sector established outside the areas of A Zone as classified in the New Industrial Policy 2001-06 are exempted from payment of land conversion fee upto 2 acres.
- Transportation:
The Government will facilitate the large BPO companies to enter into a contract with the State owned Road Transport Corporations and BMTC to provide suitable dedicated transport services for the commuting of their employees.
Relaxations
- The State's Millennium IT Policy has demonstrated the progressive stance & commitment to the industry. The state has business friendly regulation & has recently adopted the Karnataka industries [Facilitation] Bill 2002. This Bill simplifies the regulatory framework by reducing the procedural requirements and rationalising documents like combined application forms, self certification by entrepreneurs, deemed approvals, rationalisation of inspections etc., with the objective of providing an efficient, responsive and transparent administrative frame work to the industry.
- Labour Laws - Simplified:
The State is committed to simplify all the relevant enactments for the BPO sector. The barriers including employment of women at night, flexi working hours, mandatory weekly off have all been removed by necessary amendments to the relevant Acts to create an optimal environment for the growth of the BPO sector in the state. It is proposed to exempt the BPO companies from furnishing returns and maintain certain registers. Submission of returns through electronic media will be encouraged. Necessary notifications to this effect will be issued by the labour department.
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