Northeast BPO Promotion Scheme
Category: Business & Entrepreneurship, Skills & Employment
Level: Central | State: Arunachal Pradesh, Sikkim, Mizoram, Tripura, Manipur, Meghalaya, Nagaland, Assam
Ministry: Ministry of Electronics and Information Technology

Details:
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.

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.
This scheme has the potential to create employment opportunities of around 15000 direct jobs, considering three shift operations. It may also create a good number of indirect jobs.



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.
1. 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).
1. The applicant may quote for a maximum of 1,500 seats, either:

  - At one location, or
  - At multiple locations in the North-Eastern Region (NER).


      - Arunachal Pradesh
      - Manipur
      - Meghalaya
      - Mizoram
      - Nagaland
      - Sikkim
      - Tripura
      - Assam



1. The applicant should commit to operate the BPO/ITeS unit for at least 3 years.
1. The applicant should furnish an undertaking to either:

  - Lease appropriate premises for at least 3 years, or
  - Provide proof of ownership of premises for setting up the BPO/ITeS unit.

1. The premises should have a minimum space of 4,000 square feet for 100 seats, calculated at 40 square feet per seat, including utilities.
1. The applicant should have achieved the minimum average annual turnover during the last 3 financial years, depending on the number of seats applied for:

  - Number Of Seats 25 – 50: ₹1,00,00,000 (Minimum Average Annual Turnover)
  - Number Of Seats 51 – 100: ₹2,00,00,000 (Minimum Average Annual Turnover)
  - Number Of Seats 101 – 500: ₹5,00,00,000 (Minimum Average Annual Turnover)
  - Number Of Seats 501 – 1,000: ₹10,00,00,000 (Minimum Average Annual Turnover)
  - Number Of Seats 1,001 – 1,500: ₹15,00,00,000 (Minimum Average Annual Turnover)

1. 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.
1. The applicant should have a positive net worth, certified by a Chartered Accountant, as on 31-03-2018 or the last audited financial year.
1. 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.

> **Consortium Eligibility:**


1. The applicant may form a consortium with an Indian company meeting the financial eligibility criteria.
1. The eligible entity in the consortium should maintain at least 26% equity shareholding for a minimum of 3 years from the commencement of operations.