BPM sector facing $1-bn loss due to diesel cab ban: Nasscom

05 May 2016

The country's business process management (BPM) sector will suffer a potential loss of $1 billion if the ban on diesel taxis in Delhi-NCR continues for another two or three weeks, industry body Nasscom said on Wednesday.

"There will be a potential $1 billion loss to the BPM sector if ban on diesel cabs continues for 2-3 weeks," Nasscom's senior vice president Sangeeta Gupta said in New Delhi.

 Nasscom also plans to move the Supreme Court in the next couple of days regarding the matter.

Nasscom representatives have already met the Delhi Police and various central ministries, including the ministry of information technology, and discussed the issues facing the industry in the wake of ban on diesel cabs in Delhi-NCR, resulting in non-availability of reliable transport options.

 "We have met the ministry of information technology and requested them to champion this across other ministries. Separately, we have also written to the heavy industries ministry, transport and environment ministries, Delhi Police and the Delhi government," she added.

 In an end to the road for diesel taxis in Delhi and National Capital Region (NCR), the Supreme Court last week refused to extend the 30 April deadline fixed for their conversion into less-polluting CNG mode.

 The ban on diesel taxis in Delh-NCR region has brought the BPM (formerly BPO) industry almost to a standstill.

The BPM industry in NCR provides direct and indirect employment to over 1 million people.

 "With 38 per cent women employees in our industry, their safety has always been a big concern to us ... we are mandated to provide transportation for home drop to employees working after 8 pm. In the absence of any reliable public transport, complying with this statutory guideline is impossible," vice chairman of Nasscom and managing director  of Quatrro Global Services, Raman Roy said.

There are five hours of downtime in last two days because of the ban and about 35 cabs are impounded and 20 cabs already challaned, he said, adding parking is becoming an issue as employees are coming by their own vehicles.

 An emergency meeting was also called by Nasscom today. It was attended by all players of BPM industry and issue of implementation of the ban was discussed.

"We need immediate relief as this involves the delivery of critical operations to clients outside India ... we hope that the judiciary appreciates our predicament and resolves it by delaying the implementation," Keshav Murugesh, group chief executive of WNS and chairman of the Nasscom BPM council said.

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