India BPO Promotion Scheme

Description
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 .

Exclusions
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Benefits
• 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

Eligibility Criteria
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.
5. > Note: Special consideration for Hilly states of HP, J&amp;K and UK.
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Application Process
Step 1: Step 1: The applicant company should visit the official website of Software Technology Parks of India.
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Step 1: The applicant company should visit the official website of Software Technology Parks of India.

Step 2: Step 2: The applicant should review the details, guidelines, and instructions related to the India BPO Promotion Scheme (IBPS) available on the portal.
Online
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: 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.
Online
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: 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.
Online
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: Step 5: After approval, the applicant company may establish the BPO/ITeS unit as per the approved proposal.
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Step 5: After approval, the applicant company may establish the BPO/ITeS unit as per the approved proposal.

Step 6: 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.
Online
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.

Required Documents
• Company Registration Certificate (under the Companies Act, 1956 or 2013 or other applicable registration).
• Permanent Account Number (PAN) Of The Company.
• Goods And Services Tax Registration Certificate (GST) or other applicable tax registration certificates.
• Labour Department Registration Certificate (if applicable).
• Service Tax Or Value Added Tax Registration Certificate (if applicable).
• Tender Acceptance Letter (as specified in the scheme 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 along with location-wise seat distribution.
• Bidder Bank Account Details for financial transactions and fund disbursement.
• Contact Details Of The Applicant Company.
• Details Of Investment Initiated For BPO/ITeS Operations (if the investment process has already started).

Frequently Asked Questions
Q: What is the objective of the IBPS?
A: 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.
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Q: Who implements the scheme?
A: The scheme is implemented through the Software Technology Parks of India under the Ministry of Electronics and Information Technology.
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Q: What type of financial assistance is provided under the scheme?
A: The scheme provides Viability Gap Funding (VGF) to eligible companies for setting up BPO/ITeS operations.
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Q: What is the maximum financial assistance available under the scheme?
A: 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.
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Q: What additional incentives are provided under the scheme?
A: 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.
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Q: How many BPO/ITeS seats are targeted under the scheme?
A: The scheme aims to support the establishment of 48,300 BPO/ITeS seats across India (excluding the North-Eastern region).
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Q: How can companies apply for the scheme?
A: Eligible companies can submit proposals or bids through the IBPS online portal available at [https://ibps.stpi.in](https://ibps.stpi.in).
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Q: Is the scheme applicable for individuals?
A: No. The scheme is intended for companies or entrepreneurs establishing BPO/ITeS operations, not for individual applicants.
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