The North East BPO Promotion Scheme (NEBPS) is a government initiative to boost employment and investment in the IT/ITES sector in the North Eastern Region (NER) of India. This scheme provides financial support to companies for establishing Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) operations. This article explores the main aspects of the scheme as detailed in a Request for Proposal (RFP) document.
Objectives: Boosting Growth and Employment in NER
The key objectives of NEBPS are:
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To generate employment opportunities for local youth in the North Eastern Region (NER) by attracting investments in the IT/ITES industry.
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To enhance regional economic development in NER by promoting the IT/ITES sector.
Financial Support: Viability Gap Funding
The NEBPS offers financial support through Viability Gap Funding (VGF):
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Up to 50% of expenditure on BPO/ITES operations is covered.
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The support covers capital (CAPEX) and operational (OPEX) expenses.
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A maximum assistance of Rs. 1 Lakh per seat is available for BPO/ITES Operations.
Special Incentives: Additional Benefits
The scheme provides special incentives such as:
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Training Incentive: Up to 50% of training expenditure, capped at Rs. 6,000 per employee, for companies that meet their employment targets.
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Incentive for Diversity & Inclusion: Additional incentives are provided for units that hire women or people with disabilities.
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Incentive for Employment Beyond Target: Bonus incentives to units exceeding their employment targets.
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Incentive for Local Entrepreneurship: Additional incentives for units partnering with local entrepreneurs.
Eligibility Requirements: Who Can Bid
To participate in the scheme, bidders must meet the following criteria:
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Registered under the Companies Act or Limited Liability Partnership Act.
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Willing to establish BPO/ITES operations in the NER with a minimum capacity of 25 seats in one location.
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Demonstrate a minimum average annual turnover in the last three financial years. (Specific amounts vary with the number of seats applied for.)
Bidding Process: Transparency and Competition
The bidding process is structured and transparent:
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Bids are submitted online through the CPP eProcurement Portal.
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A two-bid system is followed – Technical bids and Financial bids.
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The process follows a “round robin” system for determining eligibility and allocating funds.
Implementation Framework: Nodal Agency and Key Partners
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The Software Technology Parks of India (STPI) serves as the nodal agency for implementing the scheme.
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STPI handles dissemination of information, scrutiny of the bids, provides support and manages fund disbursement.
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The scheme also involves support from State governments in the North East region.
Key Operational Requirements:
Successful bidders are required to:
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Establish operations within 6 months of receiving In-Principle Approval (IPA), with a provision for extension under certain circumstances.
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Maintain specified levels of employment for a period of 3 years.
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Furnish a Bank Guarantee for 10% of the approved financial support.
Conclusion
The North East BPO Promotion Scheme is designed to stimulate the growth of the IT/ITES sector in the region, and provide new employment opportunities. By offering financial incentives and strategic support, the scheme makes it possible for eligible companies to operate in the region, leading to economic development and a higher standard of living for its people.