India BPO Promotion Scheme

IAS Prelims 2023

The Government has approved India BPO Promotion Scheme (IBPS) under the Digital India Programme to create employment opportunities and promotion of BPO/ITES operations across the country to secure balanced regional growth of IT/ITES industry, with an outlay of ₹ 493 crore.

The scheme provides capital support along with special incentives upto ₹ 1 lakh/seat in form of Viability Gap Funding (VGF).

About 48,300 seats have been planned with distribution across State(s)/UT(s) based on population percentage as per Census 2011, excluding metro cities along with their urban agglomeration viz. Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune and States of North East Region (NER).

Dedicated Web Portal has been launched which is one stop web portal to know bidding details, status, news, alerts and other related information regarding India BPO Promotion Scheme (IBPS).

The web portal also provides special login for bidders to raise disbursement requests related to capital support, special incentives and to furnish Quarterly Performance Report etc.


Creation of employment opportunities for the youth, by promoting the IT/ITES Industry particularly by setting up the BPO/ITES operations.

Promotion of investment in IT/ITES Sector in order to expand the base of IT Industry and secure balanced regional growth.

Salient Features

-Total BPO/ITES seats: 48,300

-Financial Support: Upto Rs. 1 lakh/seat

-Scheme Outlay: Rs. 493 crore

-Targeting employment for ~1.5 lakh persons across the country.

-Disbursement of financial support directly linked to employment generation and is re-imbursement based.

-Reduces migration to metro cities.

– Online Bidding (

Financial Support under IBPS:

Capital Support: 50% of actual expenditure with cap of Rs. 1 lakh/seat

Special Incentives: Percentage of eligible capital support, within cap of Rs. 1 lakh/seat

(a) 5% for promoting local entrepreneur

(b) 5% for providing employment to women

(c) 2% for providing employment to persons with disability

(d) Up to 10% for providing employment beyond target

(e) 5% for setting up operations other than State Capital


The scheme was launched by Minister of Electronics & IT on 28th December 2015.

In the two rounds of bidding of IBPS, 83 online bids for about 15,000 BPO/ITES seats received.

In-Principle Approval (IPA) issued for a total of 9,020 BPO/ITES seats.

22 online bids received in 2nd round of bidding for more than 3,000 seats are under technical and financial evaluation by STPI.

More than 50 companies will set up BPO/ITES operations in 60 Locations across 18 States & 2 UT.