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BPO promotion Schemes

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. This scheme would ensure substantial investment.

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.

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 162 17 179
Total Units Approved 235 20 255
Current Cities Covered 94 11 105
Operational Seats 45592 1451 47043
Operational Units 233 19 252
Current Cities Operational 94 10 104
Employment Reported by the units 42295 792 43087
Women Employment Reported 17248 207 17455
States/UTs covered 21 6 27