North East BPO Promotion Scheme (NEBPS) and India BPO Promotion Scheme (IBPS)

Ministry of Electronics & IT, Government of India notified the “India BPO Promotion Scheme (IBPS)” and “North East BPO Promotion Scheme (NEBPS)” under Digital India Programme. The schemes provide financial support in the form of Viability Gap Funding (VGF) to eligible companies, with the following objectives:

1. Creation of employment opportunities for the youth, by promoting the IT/ITeS Industry particularly by setting up the BPO/ITeS operations in smaller cities.
2. Promotion of investment in IT/ITeS Sector in order to expand the base of ITeS Industry and secure balanced regional growth. 

STPI is the Nodal Agency for implementation of the BPO Promotion Schemes. Total budgetary outlay of these schemes is Rs. 543 Crore. The IBPS and NEBPS seek successful establishment of 48,300 seats in respect of BPO/ITeS operation across the country (except NE) and 5,000 seats in respect of BPO/ITeS operation in North Eastern Region respectively. The duration of IBPS was till 31.03.2019 and duration of NEBPS was till 31.03.2020 to invite new bids.

Salient features of the schemes include:

• Financial support of up to 50% of expenditure [Capital Expenditure (CAPEX) and/or Operational Expenditure (OPEX)] incurred on permissible items, with upper ceiling of Rs. 1 lakh per BPO/ITeS seat.
• Special incentives (Additional within upper cap of Rs 1 Lakh/Seat)
  1. 5% incentive for employing 50% Women
  2. 7.5% incentive for employing 75% Women (only in NEBPS)
  3. 2% incentive for employing 4% differently abled persons
  4. Up to 10% incentive for generating employment beyond target
  5. 5% incentive for local entrepreneurs
  6. 5% incentive for setting up BPO at location other than State capital (only for IBPS)
  7. Training incentive for regular employees

A summary status of IBPS and NEBPS is as mentioned below:

Detail	India BPO Promotion Scheme (IBPS)	North East BPO Promotion Scheme (NEBPS)	Total
Provisioned Seats	48300	5000	53300
Total Companies Approved	154	16	170
Total Units Approved	227	19	246
Current Cities Covered	93	11	104
Operational Seats	44092	1451	45543
Operational Units	227	19	246
Current Cities Operational	93	11	104
Employment Reported by the units	52572	810	53382
Women Employment Reported	22358	234	22592
States/UTs covered	21	6	27