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The Northeast BPO Promotion Scheme (NEBPS) offers financial aid to companies setting up Business Process Outsourcing (BPO) Read More... and IT Enabled Services (ITeS) units in India's North-Eastern region. It aims to boost employment and IT industry growth in these states. Read less

Details

Looking to expand the IT and IT Enabled Services (ITeS) sector in North East India? The Northeast BPO Promotion Scheme (NEBPS) is designed to do just that. Launched by the Ministry of Electronics and Information Technology, this scheme aims to create jobs for young people and encourage investment in the region.

Through a mechanism called Viability Gap Funding (VGF), eligible companies receive financial support to establish BPO/ITeS operations. The scheme, managed by Software Technology Parks of India under the Digital India initiative, plans to set up 5,000 BPO/ITeS seats across the North-Eastern states. This will help build better infrastructure, develop skilled talent, and ensure balanced development in the IT/ITeS sector.

What Is This Scheme?

The NEBPS is a government initiative to boost the IT and ITeS industry in the North-Eastern part of India. It provides financial assistance to companies willing to set up BPO and similar services operations. The goal is to create employment and economic opportunities in states like Assam, Arunachal Pradesh, and others.

Who Can Benefit From This Scheme?

This scheme is primarily for companies looking to set up BPO and ITeS operations. This includes both established businesses and new entrepreneurs who meet specific criteria. The ultimate beneficiaries are the young people in the North-Eastern region who will gain employment from these new ventures.

Why This Scheme Is Important

The NEBPS plays a crucial role in bridging the development gap between the North-Eastern states and other parts of India. By promoting IT/ITeS investments, it not only creates direct job opportunities but also stimulates indirect employment and economic activity. It helps diversify the regional economy and brings modern services and infrastructure to these areas.

Objective

The Northeast BPO Promotion Scheme (NEBPS) offers financial aid to companies setting up Business Process Outsourcing (BPO) and IT Enabled Services (ITeS) units in India's North-Eastern region. It aims to boost employment and IT industry growth in these states.

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

To be eligible for the Northeast BPO Promotion Scheme, companies must meet the following conditions:

Registration: The applicant must be registered in India as per the Companies Act, 1956 or 2013, or under the Limited Liability Partnership Act, 2008.
Minimum Capacity: Willingness to establish Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) operations with at least 25 seats at a single location (city/town).
Seat Application Limit: An applicant can apply for a maximum of 1,500 seats. These seats can be in one location or spread across multiple locations within the North-Eastern Region (NER), which includes:
- Arunachal Pradesh
- Manipur
- Meghalaya
- Mizoram
- Nagaland
- Sikkim
- Tripura
- Assam
Operational Commitment: Commitment to operate the BPO/ITeS unit for a minimum of 3 years.
Premises: Commitment to either lease suitable premises for at least 3 years or provide proof of ownership of the premises. The space must be at least 4,000 square feet for 100 seats, which is 40 square feet per seat including utilities.
Financial Turnover: Minimum average annual turnover over the last 3 financial years, based on the number of seats applied for:
- 25 – 50 seats: ₹1,00,00,000
- 51 – 100 seats: ₹2,00,00,000
- 101 – 500 seats: ₹5,00,00,000
- 501 – 1,000 seats: ₹10,00,00,000
- 1,001 – 1,500 seats: ₹15,00,00,000
Employment Commitment: Commitment to employ at least 1.5 times the number of approved seats for a minimum of 3 years.
Net Worth: A positive net worth, as certified by a Chartered Accountant, as of March 31, 2018, or the last audited financial year.
Integrity Declaration: A self-declaration confirming that the applicant has not been declared ineligible due to corrupt or fraudulent practices and is not blacklisted by any government agency.

Consortium Eligibility:

An applicant can form a consortium with an Indian company that meets the financial eligibility criteria. In such cases, the eligible entity in the consortium must hold at least 26% equity shareholding for a minimum of 3 years from the start of operations.

How To Apply

Companies interested in the Northeast BPO Promotion Scheme need to follow a specific application process, usually involving submitting a bid with all required documents and fees. The detailed steps and specific guidelines will be available in the official tender documents released by the implementing agency.

Check Tender Documents: Download the official bid document from the designated portal. This document will contain all details about the scheme, eligibility, application format, and deadlines.
Prepare Application: Fill out the application form accurately and compile all necessary documents as listed.
Submit Bid: Submit the bid along with the Tender Fee and Bid Security / Earnest Money Deposit (EMD) as specified. Payment details are usually required.
Official Address/Link: Applications and further details are typically managed through the Software Technology Parks of India (STPI) or a designated government portal. The official website for updates and submission is usually provided in the scheme's notification. For specific submission details, please refer to the latest tender notifications issued by the Ministry of Electronics and Information Technology or STPI.

Documents Required

To apply for the Northeast BPO Promotion Scheme, applicants need to submit the following documents:

Company Registration Certificate (under 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 (VAT) Registration Certificate (if applicable).
Tender Acceptance Letter (as per the scheme's bid document).
Proof of Tender Fee payment and Bid Security / Earnest Money Deposit (EMD) with bank transaction details.
Details of seats applied for, including location-wise distribution in each North-Eastern state or Union Territory.
Bank Account Details of the applicant company for financial transactions and fund disbursement.
Contact details of the applicant company.
Details of investment initiated for BPO/ITeS operations (if the investment process has already begun).

FAQ’s

What's the main goal of the Northeast BPO Promotion Scheme?

The main goal is to encourage the setup of Business Process Outsourcing (BPO) and IT Enabled Services (ITeS) operations in North East India. This will help create jobs for local youth and boost the IT industry in the region.

Which government ministry is behind this scheme?

The Ministry of Electronics and Information Technology launched the Northeast BPO Promotion Scheme as part of the Digital India initiative.

How much financial help can companies get?

Companies can receive financial support for their Capital Expenditure (CAPEX) or Operational Expenditure (OPEX). This support is up to 50% of the cost per seat, with a ceiling of ₹1,00,000 per seat.

What are the job creation targets?

The scheme aims to help establish 5,000 BPO/ITeS seats in the North-Eastern states. This is expected to lead to about 15,000 direct jobs and many more indirect employment opportunities.

Which North-Eastern states are included in this scheme?

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

Who is eligible to apply for this scheme?

Companies registered in India under the Companies Act, 1956 or 2013, or under the Limited Liability Partnership Act, 2008, can apply.

Is there a minimum number of seats required to apply?

Yes, applicants must be willing to set up BPO/ITeS operations with a minimum of 25 seats at a single location.

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

A single applicant can apply for up to 1,500 seats. These can be in one city or spread across different locations in the North-Eastern Region.

For how long must a company operate its unit?

Companies must commit to running their BPO/ITeS unit for at least 3 years.

Are there any extra incentives available?

Yes, there are additional incentives. These include bonuses for hiring a high percentage of women, employing people with disabilities, exceeding job targets, and for local entrepreneurs.

What are the financial turnover requirements for applicants?

The minimum average annual turnover required over the last 3 financial years varies with the number of seats applied for. For 25-50 seats, it's ₹1 crore; for 51-100 seats, it's ₹2 crore; for 101-500 seats, it's ₹5 crore; for 501-1,000 seats, it's ₹10 crore; and for 1,001-1,500 seats, it's ₹15 crore.