Northeast BPO Promotion Scheme

Description
The scheme “Northeast BPO Promotion Scheme NEBPS ” has been launched by the Ministry of Electronics and Information Technology. It aims to create employment opportunities for youth and promote investment in the Information Technology IT and Information Technology Enabled Services ITeS sector by establishing BPO/ITeS operations in the North-Eastern region of India. Through this scheme, financial support in the form of Viability Gap Funding VGF is provided to eligible companies establishing BPO/ITeS operations. The scheme is implemented by Software Technology Parks of India under the Digital India Programme. The scheme seeks to incentivise the establishment of 5,000 BPO/ITeS seats in the North-Eastern states, thereby strengthening infrastructure, developing skilled manpower, and promoting balanced regional growth in the IT/ITeS sector.

Exclusions
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Benefits
• Financial support [Capital Expenditure (CAPEX) and/or Operational Expenditure (OPEX)] of up to 50% of expenditure per seat, with an upper limit of ₹ 1 Lakh/seat.
• Special incentives for:
• 7.5% incentive for employing 75% Women (only in NEBPS)
• 2% incentive for employing 4% differently abled persons
• Up to 10% incentive for generating employment beyond the approved target.
• 5% incentive for local entrepreneurs.

Eligibility Criteria
1. The applicant should be registered in India under the Companies Act, 1956 or the Companies Act, 2013, or registered under the Limited Liability Partnership Act, 2008, as applicable.
2. The applicant should be willing to establish Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) operations with a minimum capacity of 25 seats at one location (city/town).
3. The applicant may quote for a maximum of 1,500 seats, either:
4. - At one location, or
5. - At multiple locations in the North-Eastern Region (NER).
6. - Arunachal Pradesh
7. - Manipur
8. - Meghalaya
9. - Mizoram
10. - Nagaland
11. - Sikkim
12. - Tripura
13. - Assam
14. The applicant should commit to operate the BPO/ITeS unit for at least 3 years.
15. The applicant should furnish an undertaking to either:
16. - Lease appropriate premises for at least 3 years, or
17. - Provide proof of ownership of premises for setting up the BPO/ITeS unit.
18. The premises should have a minimum space of 4,000 square feet for 100 seats, calculated at 40 square feet per seat, including utilities.
19. The applicant should have achieved the minimum average annual turnover during the last 3 financial years, depending on the number of seats applied for:
20. - Number Of Seats 25 – 50: ₹1,00,00,000 (Minimum Average Annual Turnover)
21. - Number Of Seats 51 – 100: ₹2,00,00,000 (Minimum Average Annual Turnover)
22. - Number Of Seats 101 – 500: ₹5,00,00,000 (Minimum Average Annual Turnover)
23. - Number Of Seats 501 – 1,000: ₹10,00,00,000 (Minimum Average Annual Turnover)
24. - Number Of Seats 1,001 – 1,500: ₹15,00,00,000 (Minimum Average Annual Turnover)
25. The applicant should commit to employing at least 1.5 times the number of approved seats as the employment target for a minimum period of 3 years.
26. The applicant should have a positive net worth, certified by a Chartered Accountant, as on 31-03-2018 or the last audited financial year.
27. The applicant should not be declared ineligible due to corrupt or fraudulent practices and should not be blacklisted by any Government agency. A self-declaration signed by an authorised signatory should be provided.
28. > **Consortium Eligibility:**
29. The applicant may form a consortium with an Indian company meeting the financial eligibility criteria.
30. The eligible entity in the consortium should maintain at least 26% equity shareholding for a minimum of 3 years from the commencement of operations.
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Application Process
Step 1: Step 1: The applicant company should visit the official website of Software Technology Parks of India.
Online
Step 1: The applicant company should visit the official website of Software Technology Parks of India.

Step 2: Step 2: The applicant should review the details, guidelines, and instructions related to the India BPO Promotion Scheme (IBPS) available on the portal.
Online
Step 2: The applicant should review the details, guidelines, and instructions related to the India BPO Promotion Scheme (IBPS) available on the portal.

Step 3: Step 3: The applicant should submit a proposal or bid through the portal for establishing Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) seats under the scheme.
Online
Step 3: The applicant should submit a proposal or bid through the portal for establishing Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) seats under the scheme.

Step 4: Step 4: The applicant should provide the required information and upload the supporting documents as specified in the scheme guidelines. The submitted proposal is evaluated by the competent authority under the scheme.
Online
Step 4: The applicant should provide the required information and upload the supporting documents as specified in the scheme guidelines. The submitted proposal is evaluated by the competent authority under the scheme.

Step 5: Step 5: After approval, the applicant company may establish the BPO/ITeS unit as per the approved proposal.
Online
Step 5: After approval, the applicant company may establish the BPO/ITeS unit as per the approved proposal.

Step 6: Step 6: The applicant may submit performance reports and claims for financial assistance through the portal to receive Viability Gap Funding (VGF) under the scheme.
Online
Step 6: The applicant may submit performance reports and claims for financial assistance through the portal to receive Viability Gap Funding (VGF) under the scheme.

Required Documents
• Company Registration Certificate (under the Companies Act, 1956 or 2013 or other applicable registration).
• Permanent Account Number (PAN) Of The Company.
• Goods And Services Tax Registration Certificate (GST) or other applicable tax registration certificates.
• 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 And Bid Security / Earnest Money Deposit (EMD) with bank transaction details.
• Details Of Seats Applied For In Each State Or Union Territory along with location-wise seat distribution.
• Bidder Bank Account Details 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 started).

Frequently Asked Questions
Q: What is the objective of the NEBPS?
A: The objective of the Northeast BPO Promotion Scheme is to promote the establishment of Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITeS) operations in the North-Eastern region of India and create employment opportunities for local youth.
The scheme also aims to encourage investment in the Information Technology (IT) and ITeS sector, expand the industry base in the North-Eastern states, and promote balanced regional growth.
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Q: Which ministry launched the Northeast BPO Promotion Scheme?
A: The scheme was launched by the Ministry of Electronics and Information Technology under the Digital India Programme.
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Q: What financial support is provided under the scheme?
A: The scheme provides financial support of up to 50% of Capital Expenditure (CAPEX) or Operational Expenditure (OPEX), subject to a maximum limit of ₹1,00,000 per BPO/ITeS seat.
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Q: What is the employment target under the scheme?
A: The scheme aims to support the establishment of 5,000 BPO/ITeS seats in the North-Eastern region, which can generate significant employment opportunities.
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Q: Which states are covered under the scheme?
A: The scheme covers the following North-Eastern states:
• Assam
• Arunachal Pradesh
• Manipur
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
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Q: Who can apply for the scheme?
A: Companies registered in India under the Companies Act, 1956 or 2013, or entities registered under the Limited Liability Partnership Act, 2008, can apply for the scheme.
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Q: What is the minimum seat capacity required to participate in the scheme?
A: The applicant should establish BPO/ITeS operations with a minimum capacity of 25 seats at one location.
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Q: What is the maximum number of seats that can be applied for under the scheme?
A: A bidder may apply for up to 1,500 seats, either at one location or across multiple locations in the North-Eastern region.
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Q: What is the minimum operational period required under the scheme?
A: The applicant should commit to operating the BPO/ITeS unit for at least 3 years.
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Q: Are there additional incentives under the scheme?
A: Yes. Additional incentives may be provided for:
• Employing women employees
• Employing persons with disabilities
• Generating employment beyond the approved target
• Local entrepreneurs establishing BPO/ITeS units
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