The North East BPO Promotion Scheme (NEBPS) is a government initiative under the Digital India Programme to incentivize the establishment of Business Process Outsourcing (BPO) and Information Technology Enabled Services (ITES) operations in the North East Region (NER) of India. This article provides an overview of the scheme as described in its Request for Proposal (RFP) document.
Objectives: Boosting Employment and Investment
The NEBPS aims to achieve:
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Creation of employment opportunities for local youth in the North East Region.
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Promotion of investment in the IT/ITES sector for balanced regional development.
Viability Gap Funding (VGF): Financial Support
The scheme offers financial incentives 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 maximum financial support per seat is Rs. 1 lakh.
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VGF covers both Capital Expenditure (CAPEX) and Operational Expenditure (OPEX).
Special Incentives: Promoting Inclusion and Performance
The scheme encourages:
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Training Incentive: Funding for training employees up to 1.5 times the number of approved seats.
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Diversity & Inclusion: Higher incentives for entities hiring women and persons with disabilities.
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Employment Beyond Target: Incentives to units exceeding employment targets (1.5 times the number of seats).
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Wider Dispersal: Incentives for units setting up BPO/ITES in locations other than state capitals.
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Local Entrepreneurship: Additional benefits for units partnering with a local entrepreneur from the NER.
Eligibility: Defining the Bidders
Bidders must meet several criteria including:
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Registration under the Companies Act or Limited Liability Partnership Act.
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Commitment to establish operations with a minimum of 25 seats at one location and bid for a maximum of 1500 seats across the NER.
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An average turnover of the last three financial years, with amounts varying by seat slab.
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Having a positive net worth as on 31-03-2019 or for the last audited financial year.
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Compliance with required government and regulatory guidelines.
Bidding Process: An Online and Transparent Approach
The bidding process is conducted online through the CPP eProcurement Portal. This transparent process involves:
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Submitting a Technical Bid with supporting documents.
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Submitting a Financial Bid using a prescribed format.
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The evaluation process follows a round robin process as per specified seat slabs.
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Meeting specific requirements such as submitting BSD, providing proof of ownership of premises etc.
Key Operational Requirements
Successful Bidders must adhere to key operating parameters:
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Establish BPO/ITES operations within 6 months from the In-Principle Approval (IPA). An extension of 3 months is available, subject to a penalty.
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Maintain a minimum employment target (1.5x the number of seats) for at least 3 years.
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Comply with the provisions mentioned in the Master Service Agreement (MSA).
Implementation and Monitoring:
The scheme is implemented through:
* STPI serving as the nodal agency.
* An Implementation Management Committee that oversees the project.
* A system that mandates regular reporting by BPO units.
Conclusion:
The North East BPO Promotion Scheme (NEBPS) is instrumental in creating opportunities for the IT/ITES sector in the North East Region of India. By providing financial support, incentives, and a structured framework for bidding, the scheme has the potential to generate employment and promote economic growth in the region, making it a significant contributor to the Indian economy.