Northeast BPO Promotion Scheme

Northeast BPO Promotion Scheme

The Northeast BPO Promotion Scheme helps companies set up BPO and ITeS units in North East India by offering Viability Gap Funding support. The Ministry of Electronics and Information Technology runs this scheme under the Digital India Programme to create jobs for local youth and encourage balanced IT sector growth across the region.

As of 2026, the scheme continues to provide financial assistance for setting up new business process outsourcing centres with a total budget allocation of ₹50 Crore. The goal is to establish 5,000 BPO/ITeS seats across the eight North Eastern states through triple-shift operations that can generate around 15,000 direct employment opportunities.

Scheme Overview

Companies approved under the scheme receive funding for both capital expenditure and operational costs. The support covers setup expenses like infrastructure development, equipment purchase, and initial training costs. Companies must operate their units for at least three years to claim the full benefit amount.

Financial Benefits

Approved applicants get reimbursement of up to 50 percent of eligible project costs. The maximum cap stands at ₹1 Lakh per seat. Additional incentives reward companies for inclusive hiring practices:

• 7.5 percent extra incentive for employing women workers who make up at least 75 percent of the workforce.
• 2 percent additional support for hiring differently abled persons covering 4 percent of total staff.
• Up to 10 percent bonus for exceeding the approved employment targets beyond the committed seats.
• 5 percent preference given to entrepreneurs who belong to the North Eastern region.

The scheme encourages companies to run triple-shift operations to maximize employment generation. Each shift creates approximately 5,000 jobs across the region, bringing the total direct employment potential to around 15,000 positions.

Eligibility Criteria

To apply for the Northeast BPO Promotion Scheme, companies must satisfy the following conditions:

• Must be registered under the Companies Act, 1956 or 2013, or Limited Liability Partnership Act, 2008.
• Minimum capacity requirement of 25 seats at a single location.
• Commitment to operate the unit for a minimum period of three years from approval date.
• Premises of at least 4,000 square feet for 100 seats, calculated pro-rata for smaller setups.
• Average annual turnover matching the seat capacity applied for, such as ₹1 Crore for 25 to 50 seats.
• Positive net worth certified by a Chartered Accountant.
• Clean record with no blacklisting by any government department or agency.

How to Apply

Interested companies need to follow the application process through the official STPI portal. Here are the steps to submit a proposal:

STEP 1 - Visit the Software Technology Parks of India website at ibps.stpi.in and navigate to the Northeast BPO Promotion Scheme section.

STEP 2 - Download and read the complete guidelines, bid documents, and master service agreement available on the portal.

STEP 3 - Prepare the required documentation including company registration certificates, PAN and GST details, labour department registration proof, and bank account information.

STEP 4 - Submit the online proposal along with the tender fee and Earnest Money Deposit through the designated payment channels.

STEP 5 - Upload all supporting documents including location-wise seat distribution plan, proof of investment initiation, and CA-certified net worth statement.

STEP 6 - Wait for the competent authority to review the bid and communicate the decision. Approved companies must then establish the BPO unit and submit regular performance reports to receive Viability Gap Funding payments.

Required Documents

Applicants should gather the following documents before starting the application process:

• Company Registration Certificate or LLP incorporation document.
• PAN card and GST registration certificate of the company.
• Labour Department registration proof showing compliance with applicable laws.
• Tender fee payment receipt and Earnest Money Deposit transaction records.
• Detailed location-wise seat distribution plan for the proposed BPO unit.
• Company bank account details with cancelled cheque or bank statement copy.
• Evidence of investment initiation such as lease agreements or property ownership papers.

References

• Official Guidelines on MeitY Website
• Software Technology Parks of India NEBPS Page
• Consolidated Administrative Approval Document

FAQ's

What does the Northeast BPO Promotion Scheme aim to achieve?

The scheme aims to promote BPO and ITeS business units in the North Eastern states, create direct employment for local youth, and encourage balanced regional growth in the IT sector.

How much financial support does the scheme provide?

Companies receive up to 50 percent reimbursement of eligible project costs, with a maximum limit of ₹1 Lakh per seat. Total budget allocated is ₹50 Crore for 5,000 seats.

Which states are covered under this scheme?

The scheme covers eight North Eastern states: Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura.

Can a company apply for more than one location?

An applicant can apply for up to 1,500 seats across one or multiple locations within the covered North Eastern states, subject to meeting all eligibility requirements for each location.

Is there any special benefit for local entrepreneurs?

Yes, local entrepreneurs from the North Eastern region receive an additional 5 percent incentive on top of the standard Viability Gap Funding support.