Northeast BPO Promotion Scheme
State: Central
Ministry: Ministry of Electronics and Information Technology
Department: null
Category: Business & Entrepreneurship, Skills & Employment
Beneficiary Type: Business Entity

The scheme aims to promote the establishment of BPO and Information Technology Enabled Services units in the North-Eastern region. Through the scheme, financial assistance in the form of Viability Gap Funding is provided to eligible companies.

Benefits:
1. 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.
1. 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.

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Eligibility:
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.

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Application Process:
[Online]
Step 1: The applicant company should visit the official website of Software Technology Parks of India.
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: 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: 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: After approval, the applicant company may establish the BPO/ITeS unit as per the approved proposal.
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.

Documents Required:
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).