India BPO Promotion Scheme

The scheme “India BPO Promotion Scheme (IBPS)” has been launched by the Ministry of Electronics and Information Technology, Government of India. It aims to create employment opportunities for youth and promote investment in the Information Technology (IT) and Information Technology Enabled Services (ITeS) sector by establishing BPO/ITeS operations in smaller cities and towns. Through this scheme, financial support in the form of Viability Gap Funding (VGF) is provided to eligible companies to establish and operate BPO/ITeS units. The scheme is implemented by Software Technology Parks of India as the nodal agency. The initiative operates under the Digital India Programme and supports the establishment of 48,300 BPO/ITeS seats across the country (except the North-Eastern region).

1. Financial support of up to 50% of expenditure [Capital Expenditure (CAPEX) and/or Operational Expenditure (OPEX)] incurred on permissible items, with an upper ceiling of ₹1 lakh per BPO/ITeS seat.
2. Special incentives (Additional within the upper cap of ₹1 Lakh/Seat)

• 5% incentive for employing 50% Women
• 2% incentive for employing 4% differently abled persons
• Up to 10% incentive for generating employment beyond the target
• 5% incentive for local entrepreneurs
• 5% incentive for setting up BPO at a location other than the State capital (only for IBPS)
• Training incentive for regular employees

1. The applicant must be a company or entrepreneur intending to establish and operate a Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) unit.
2. The applicant must establish BPO/ITeS operations in eligible locations under the India BPO Promotion Scheme (IBPS).
3. The applicant must create the approved BPO/ITeS seats.
4. The applicant must create employment opportunities, particularly for youth, by establishing BPO/ITeS operations.

Note: Special consideration for Hilly states of HP, J&K and UK.

Online

Step 1: The applicant company should visit the official website of Software Technology Parks of India.
Step 2: The applicant should review the details, guidelines, and instructions related to the India BPO Promotion Scheme (IBPS) available on the portal.
Step 3: The applicant should submit a proposal or bid through the portal for establishing Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) seats under the scheme.
Step 4: The applicant should provide the required information and upload the supporting documents as specified in the scheme guidelines. The submitted proposal is evaluated by the competent authority under the scheme.
Step 5: After approval, the applicant company may establish the BPO/ITeS unit as per the approved proposal.
Step 6: The applicant may submit performance reports and claims for financial assistance through the portal to receive Viability Gap Funding (VGF) under the scheme.