India BPO Promotion Scheme 2026: Up to ₹1 Lakh Subsidy per Seat & Details
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Quick answer
The India BPO Promotion Scheme provides Viability Gap Funding of up to ₹1 lakh per seat to companies establishing BPO or ITeS operations in smaller cities and towns. It supports eligible enterprises and entrepreneurs to generate employment opportunities, especially for youth across the country outside the North-Eastern region. Businesses can apply online by submitting proposals through the official STPI IBPS portal.
At a glance
| Main benefit | Up to ₹1 lakh funding per seat |
| Ministry / department | Ministry of Electronics and Information Technology |
| Level | Central Government |
| Application mode | Online |
About the scheme
Launched under the Digital India Programme by the Ministry of Electronics and Information Technology, the India BPO Promotion Scheme (IBPS) aims to decentralise the IT industry and generate local employment in tier-2 and tier-3 towns. Implemented through the Software Technology Parks of India (STPI) as the nodal agency, the scheme provides financial backing through Viability Gap Funding covering up to 50% of permissible capital and operational expenses. It plans to support the setup of 48,300 BPO/ITeS seats across India (excluding the North-East), featuring special incentives for women, differently abled workers, and local entrepreneurs.
Benefits
- Financial support of up to 50% of permissible capital expenditure (CAPEX) and/or operational expenditure (OPEX), capped at ₹1 lakh per BPO/ITeS seat.
- 5% additional incentive for employing at least 50% women employees (within the ₹1 lakh cap).
- 2% additional incentive for employing at least 4% differently abled persons (within the ₹1 lakh cap).
- Up to 10% additional incentive for creating employment beyond the target (within the ₹1 lakh cap).
- 5% additional incentive for local entrepreneurs (within the ₹1 lakh cap).
- 5% additional incentive for establishing operations outside the State capital (within the ₹1 lakh cap).
- Training incentive for regular employees.
Who can apply (eligibility)
- The applicant must be a company or entrepreneur intending to set up and run a BPO or ITeS unit.
- Operations must be established in eligible locations designated under the scheme.
- The entity must establish the approved number of BPO/ITeS seats.
- The applicant must generate employment opportunities, especially for youth.
- Special consideration is provided for hilly states including Himachal Pradesh, Jammu & Kashmir, and Uttarakhand.
Documents required
- Company Registration Certificate (under the Companies Act, 1956 or 2013 or other relevant registration)
- Permanent Account Number (PAN) of the company
- Goods and Services Tax (GST) Registration Certificate or other relevant tax certificates
- Labour Department Registration Certificate (if applicable)
- Service Tax or Value Added Tax Registration Certificate (if applicable)
- Tender Acceptance Letter as prescribed in the bid document
- Proof of Tender Fee and Bid Security / Earnest Money Deposit (EMD) with bank transaction details
- Details of seats applied for in each State or Union Territory with location-wise distribution
- Bidder bank account details
- Contact details of the applicant company
- Details of investment initiated for BPO/ITeS operations (if already started)
How to apply
- 1Visit the official Software Technology Parks of India (STPI) IBPS website at ibps.stpi.in.
- 2Carefully review the guidelines, instructions, and scheme criteria published on the portal.
- 3Submit your bid or proposal through the online portal to establish BPO/ITeS seats.
- 4Fill in the required enterprise information and upload all necessary supporting documents.
- 5Wait for the proposal evaluation and formal approval from the competent authority.
- 6Set up the BPO/ITeS unit as per the approved bid specifications upon receiving clearance.
- 7Submit periodic performance reports and claims via the portal to receive the Viability Gap Funding.
Frequently asked questions
What is the maximum financial assistance under the India BPO Promotion Scheme?+
Eligible companies can receive Viability Gap Funding of up to 50% of permissible CAPEX or OPEX, subject to an upper ceiling of ₹1 lakh per BPO/ITeS seat.
Can individual job seekers apply directly for this scheme?+
No, this scheme is intended for companies and entrepreneurs setting up BPO/ITeS units, not for individual job seekers.
Which regions are excluded from the India BPO Promotion Scheme?+
The scheme supports the establishment of seats across India except for the North-Eastern region, which is covered under a separate initiative.
What additional incentives are provided for women and disabled workers?+
Within the ₹1 lakh per seat cap, companies get an extra 5% incentive for employing 50% women and a 2% incentive for employing 4% differently abled individuals.
Who implements the India BPO Promotion Scheme?+
The scheme is implemented by the Software Technology Parks of India (STPI) under the Ministry of Electronics and Information Technology.
How many total seats are targeted under IBPS?+
The scheme targets the creation of 48,300 BPO/ITeS seats across permissible locations in India.
NaukriZila is not a government website. Apply only on the official portal; never pay anyone to apply for a government scheme. Source: myScheme (Government of India)