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This scheme supports the setting up of Business Process Outsourcing (BPO) and IT Enabled Services (ITeS) centres Read More... in North-Eastern India by providing financial aid to eligible companies. Read less

Details

Looking to boost IT and BPO jobs in India's Northeast? The Northeast BPO Promotion Scheme (NEBPS) is here to help!

What Is This Scheme?

Launched by the Ministry of Electronics and Information Technology, the NEBPS is designed to create jobs for young people in the Northeast. It encourages companies to set up Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITeS) operations in the region. Through this scheme, companies get financial help in the form of Viability Gap Funding (VGF) to establish these centres. The scheme aims to create 5,000 BPO/ITeS seats, boost infrastructure, develop skilled workers, and promote balanced growth in the IT/ITeS sector across the North-Eastern states.

Who Can Benefit From This Scheme?

The primary beneficiaries are companies looking to establish BPO/ITeS operations in the North-Eastern states. This includes registered Indian companies and LLPs that meet specific eligibility criteria related to capacity, operational period, financial turnover, and employment commitments.

Why This Scheme Is Important

The NEBPS plays a crucial role in bringing IT/ITeS business to the Northeast, a region that has immense potential. By providing financial incentives, it helps overcome initial setup challenges, attracts investment, and generates significant direct and indirect employment opportunities for the local youth. It is a key initiative under the Digital India Programme, aiming for inclusive and balanced regional development.

Objective

This scheme supports the setting up of Business Process Outsourcing (BPO) and IT Enabled Services (ITeS) centres in North-Eastern India by providing financial aid to eligible companies.

Benefits

Registration of farmers cultivating medicinal and aromatic plants, simplification of the extraction process for cultivated herbs, and prevention of illegal exploitation of herbal resources from forest areas.

Sources and references

Guidelines (Page No. 223)

Eligibility Criteria

You must be a company registered in India under the Companies Act, 1956 or 2013, or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008.
You need to be willing to set up Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) operations with at least 25 seats at a single location (city/town).
You can apply for a maximum of 1,500 seats. These can be at one location or spread across multiple locations in the North-Eastern Region, including:
- Arunachal Pradesh
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Sikkim
- Tripura
- Assam
You must commit to operating the BPO/ITeS unit for a minimum of 3 years.
You need to provide an undertaking to either lease suitable premises for at least 3 years or show proof of owning the premises for the BPO/ITeS unit.
The premises should be at least 4,000 square feet to accommodate 100 seats, with 40 square feet allocated per seat, including space for utilities.
You must meet the minimum average annual turnover requirement for the last 3 financial years, based on the number of seats you're applying for:
- 25 – 50 seats: Minimum Average Annual Turnover of ₹1,00,00,000
- 51 – 100 seats: Minimum Average Annual Turnover of ₹2,00,00,000
- 101 – 500 seats: Minimum Average Annual Turnover of ₹5,00,00,000
- 501 – 1,000 seats: Minimum Average Annual Turnover of ₹10,00,00,000
- 1,001 – 1,500 seats: Minimum Average Annual Turnover of ₹15,00,00,000
You must commit to employing at least 1.5 times the number of approved seats for a minimum of 3 years.
Your company must have a positive net worth, as certified by a Chartered Accountant, as of 31st March 2018 or your last audited financial year.
You should not have been found ineligible due to corrupt or fraudulent practices and must not be blacklisted by any government agency. A self-declaration signed by an authorized signatory is required.

Consortium Eligibility:

You can form a consortium with an Indian company that meets the financial eligibility criteria.
The eligible entity within the consortium must hold at least 26% equity shareholding for a minimum of 3 years from the start of operations.

How To Apply

The application process is typically conducted through a bidding or tender system managed by Software Technology Parks of India (STPI) under the Ministry of Electronics and Information Technology. Specific application steps and submission details will be outlined in the official bid documents released by STPI.

Generally, the process involves:

Downloading the detailed scheme bid document from the official STPI website or other designated portals.
Completing the application form and other required annexures as per the bid document.
Submitting the application along with the Tender Fee and Bid Security / Earnest Money Deposit (EMD).
Ensuring all required documents are attached and submitted before the specified deadline.

For detailed instructions, please refer to the official notifications and the scheme bid document.

Official Source:

Software Technology Parks of India (STPI)

Documents Required

When applying for the Northeast BPO Promotion Scheme, you will typically need to submit the following documents:

Company Registration Certificate (under the Companies Act, 1956 or 2013, or other relevant registration).
Permanent Account Number (PAN) of the Company.
Goods and Services Tax (GST) Registration Certificate or other applicable tax registration.
Labour Department Registration Certificate (if applicable).
Service Tax or Value Added Tax Registration Certificate (if applicable).
Tender Acceptance Letter (as specified in the scheme bid document).
Proof of Tender Fee payment and Bid Security / Earnest Money Deposit (EMD) with bank transaction details.
Details of seats applied for in each North-Eastern state and their location-wise distribution.
Applicant Company's Bank Account Details for financial transactions.
Contact Details of the Applicant Company.
Details of investment already initiated for BPO/ITeS operations (if applicable).

FAQ’s

What are the main goals of the Northeast BPO Promotion Scheme?

The primary goals of the NEBPS are to boost Business Process Outsourcing (BPO) and IT Enabled Services (ITeS) operations in India's Northeast. It aims to create job opportunities for the region's youth, attract investment in the IT/ITeS sector, and promote balanced regional development.

Can you explain the financial assistance offered under this scheme?

Yes. The scheme offers financial help up to 50% of the expenditure for setting up each BPO/ITeS seat. However, there's a cap of ₹1,00,000 per seat for this support.

Which states are included in the North-Eastern Region for this scheme?

The scheme covers all eight North-Eastern states: Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

Who is eligible to apply for the NEBPS?

Indian companies registered under the Companies Act, 1956 or 2013, or Limited Liability Partnerships (LLPs) registered under the LLP Act, 2008, are eligible to apply.

What is the minimum number of seats required to apply?

To be eligible, an applicant must commit to establishing BPO/ITeS operations with a minimum of 25 seats at a single location.

Are there any special incentives available?

Yes, there are several special incentives. These include extra benefits for employing a high percentage of women (7.5% incentive for 75% women), employing differently-abled persons (2% incentive for 4% disabled employees), generating employment beyond the target (up to 10%), and supporting local entrepreneurs (5% incentive).

How long does the BPO/ITeS unit need to operate?

The applicant must commit to operating the BPO/ITeS unit for a minimum period of 3 years.

What is the maximum number of seats a company can apply for?

A company can apply for a maximum of 1,500 seats. These seats can be at one location or spread across multiple locations within the North-Eastern Region.

What kind of turnover is required to be eligible?

The minimum average annual turnover required depends on the number of seats applied for. For instance, 25-50 seats require ₹1 Crore turnover, while 1001-1500 seats require ₹15 Crore turnover over the last 3 financial years.

Is there a minimum space requirement for the operational premises?

Yes, the premises must have a minimum space of 4,000 square feet to accommodate 100 seats, with an allocation of 40 square feet per seat, including utilities.

Which ministry is behind the Northeast BPO Promotion Scheme?

The Northeast BPO Promotion Scheme is an initiative of the Ministry of Electronics and Information Technology, implemented under the Digital India Programme.