India BPO Promotion Scheme

India BPO Promotion Scheme helps grow the IT and IT-enabled services sector by encouraging companies to set up BPO units in smaller cities and towns. Ministry of Electronics and Information Technology runs this scheme under the Digital India Programme, and it offers Viability Gap Funding to support job creation and regional investment.

The scheme is open for companies and entrepreneurs who want to start BPO or ITeS operations outside the big cities. It aims to create about 48,300 BPO/ITeS seats across the country, with a total outlay of about ₹493 crore shared among states based on their population.

India BPO Promotion Scheme - Introduction

Software Technology Parks of India works as the nodal agency for this scheme. It invites bids from eligible companies, and the seats go to the winning bidders. The scheme gives special attention to hilly states like Himachal Pradesh, Jammu and Kashmir, and Uttarakhand, where the entry requirement is lower.

The scheme does not allow setting up BPO units in big cities and their urban areas. Cities like Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Pune, and the NCR region (including Delhi, NOIDA, Gurgaon, and Faridabad) are not covered. This is done to spread the IT work to smaller towns.

Key Information

Benefits

Eligible companies get financial support that covers up to 50% of their capital or operational spending, capped at ₹1,00,000 per BPO/ITeS seat. Extra incentives are available within this total cap:

• 5% extra for employing at least 50% women.
• 2% extra for employing at least 4% differently abled people.
• Up to 10% extra for exceeding the employment targets.
• 5% extra for local entrepreneurs.
• 5% extra for units set up outside the state capital.
• Training incentives for regular employees.

Eligibility

Companies must meet the following conditions to apply for the scheme:

• The applicant must be a private limited company, one person company, or limited company registered in India with a positive net worth.
• The company must be ready to set up a new BPO or ITeS operation with at least 100 seats at one location.
• The company must commit to run the operation for at least 3 years.
• The company must have a minimum average annual turnover of about ₹2 crore in the last three financial years. For Himachal Pradesh, Jammu and Kashmir, and Uttarakhand, a turnover of about ₹1 crore is enough for a 50-seat BPO.
• The unit must be set up outside the excluded big cities and their urban areas.

Special consideration is given to hilly states like Himachal Pradesh, Jammu and Kashmir, and Uttarakhand.

Application Process

Follow these steps to apply for the scheme:

STEP 1 - Visit the official Ministry of Electronics and Information Technology page for the latest details and updates.

STEP 2 - Review all the guidelines, documents, and instructions given for the India BPO Promotion Scheme.

STEP 3 - Submit a formal bid online in the two-bid format (technical and financial) with the required bid security of ₹5,000 per seat as per the RFP.

STEP 4 - Provide all the required details and upload the supporting documents for assessment by the committee set up by Software Technology Parks of India.

STEP 5 - Once the bid is approved and seats are allocated, set up the BPO/ITeS unit as per the plan.

STEP 6 - Submit performance reports and financial claims to receive the sanctioned Viability Gap Funding in two instalments.

Documents

Applicants must keep the following documents ready:

• Company registration certificate under the Companies Act 1956 or 2013.
• Company PAN card.
• GST registration certificate or relevant tax documents.
• Labour department registration certificate, if applicable.
• Relevant service tax or VAT certificates, if applicable.
• Tender acceptance letter as per the bid requirements.
• Proof of tender fee and bank transaction details for the Earnest Money Deposit.
• Breakdown of seats applied for by location.
• Company bank account details for fund payment.
• Records of the initial investment for the BPO/ITeS project.

References

For more details, check the official India BPO Promotion Scheme guidelines and the Ministry of Electronics and Information Technology BPO promotion schemes page.

FAQ's

What is the main goal of the India BPO Promotion Scheme?

The scheme promotes balanced regional growth by setting up BPO and ITeS units in smaller cities and towns to generate local employment.

Who runs the scheme?

Software Technology Parks of India runs the scheme under the guidance of the Ministry of Electronics and Information Technology.

What financial help is offered?

The scheme provides Viability Gap Funding to help eligible companies cover set-up and operating costs.

What is the financial limit per seat?

Companies can receive up to 50% of their capital or operational expenses, capped at ₹1,00,000 per BPO/ITeS seat.

Are there extra incentives for diversity goals?

Yes, incentives are available for hiring a high share of women, employing differently abled people, or exceeding the employment targets.

Can individuals apply for this scheme?

No, the scheme is for registered companies or entrepreneurs who plan to set up BPO/ITeS business units.