Taxi ban in New Delhi

NASSCOM predicts $1 billion loss due to diesel taxi ban

A $1 billion worth of loss for India’s BPO sector if the ban of diesel taxis in Delhi-NCR continues for another 2-3 weeks. On May 4, the National Association of Software and Services Companies (NASSCOM) senior vice president, Sangeeta Gupta stated, “There will be a potential $1 billion loss to the business process management (BPM) sector if ban on diesel cabs continues for 2-3 weeks.”

Representatives from NASSCOM have extended efforts to meet with Delhi Police and other central ministries to discuss the pressing concerns in line with the ban on diesel cabs. The organization believes that it may result the lack of available and reliable transport options especially to the BPO sector in New Delhi-NCR.

“We have met the Ministry of Information Technology, and requested them to champion this across other ministries. Separately, we have also written to Heavy Industries Ministry, Transport and Environment Ministries, Delhi Police and Delhi Government,”

~Sangeeta Gupta

In this ban, the BPM industry have brought trouble to every BPO employee in finding fast and reliable transportation. It has brought the sector into a stagnant stage since the area provides employments to over a 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 8PM. In absence of any reliable public transport, complying with this statutory guideline is impossible,”

~Raman Roy, vice chairman Nasscom and MD of Quatrro Global Services.

Raman Roy also added that there was a five-hour downtime in the last two days because of the ban. Some employees cannot go to work while some bring their own vehicles that caused another issue in having adequate parking spaces.

The BPO sector is in dire need for an immediate relief.

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

BPO industry in India is largely youth dominated. It contributes over $25 billion to operation by companies with NCR being one of the hotspots. 60-65 percent of the employees reside within Delhi and need to reach their offices in Gurugram and Noida where most of the BPO firms are located.

Moreover, NASSCOM stated that there have been many cases of harassment were reported. The taxis were stopped, challaned and delayed in the last two days.

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