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Skills & Employment; Science, IT & Communications

India BPO Promotion Scheme

The scheme aims to create employment opportunities and promote investment in the IT/ITeS sector by establishing BPO/ITeS units in smaller cities. Through this scheme, financial support in the form of Viability Gap Funding is provided to eligible companies.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

- 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. | - 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

Who can apply

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.; The applicant must establish BPO/ITeS operations in eligible locations under the India BPO Promotion Scheme (IBPS).; The applicant must create the approved BPO/ITeS seats.; The applicant must create employment opportunities, particularly for youth, by establishing BPO/ITeS operations.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the objective of the IBPS?

The scheme aims to promote the establishment of BPO and Information Technology Enabled Services (ITeS) operations in smaller cities and towns, thereby generating employment opportunities and promoting balanced regional growth in the IT/ITeS sector.

Who implements the scheme?

The scheme is implemented through the Software Technology Parks of India under the Ministry of Electronics and Information Technology.

What type of financial assistance is provided under the scheme?

The scheme provides Viability Gap Funding (VGF) to eligible companies for setting up BPO/ITeS operations.

What is the maximum financial assistance available under the scheme?

Financial assistance of up to 50% of Capital Expenditure (CAPEX) or Operational Expenditure (OPEX) is provided, subject to a maximum limit of ₹1,00,000 per BPO/ITeS seat.

What additional incentives are provided under the scheme?

Additional incentives may be provided for: | • Employment of women employees. | • Employment of differently-abled persons. | • Generation of employment beyond the approved target. | • Local entrepreneurs establishing BPO units. | • Establishment of BPO units outside state capitals.

How many BPO/ITeS seats are targeted under the scheme?

The scheme aims to support the establishment of 48,300 BPO/ITeS seats across India (excluding the North-Eastern region).

How can companies apply for the scheme?

Eligible companies can submit proposals or bids through the IBPS online portal available at https://ibps.stpi.in.

Is the scheme applicable for individuals?

No. The scheme is intended for companies or entrepreneurs establishing BPO/ITeS operations, not for individual applicants.