India BPO Promotion Scheme

BPOs have become a common sight in India over the recent decade and have provided ample of employment opportunities. The government has introduced the Indian BPO Promotion Scheme to help set up new BPO facilities, expand the existing ones, and provide the necessary funding for the betterment of that market.


The Indian BPO Promotion Scheme provides capital support to those looking to set up a BPO. This scheme provides financial aid which can be utilized to organize a fully-functional office. This in turn helps create employment opportunities across the country, especially via Information Technology (IT), particularly in the digitally deficit areas of the country.


What are the benefits that this scheme provides?

The following are the benefits that this scheme provides:

  1. Capital support (50% of actual expenditure) along with special incentives up to ₹1 lakh per seat in the form of Viability Gap Funding (VGF) provided
  2. Endorsed employment for about 1.5 lakh people across the country
  3. Relaxed turnover criteria for BPOs set up in the hilly areas of Jammu and Kashmir, Himachal Pradesh, and Uttarakhand

The scheme also provides special incentives (the incentive will be a percentage of eligible capital support, within a capital of ₹1 lakh per seat. If the eligible capital support is ₹100, and a company has received an added incentive of 5%, they will receive ₹105 as capital support) such as:

Particulars Percentage of incentive received
Promoting local entrepreneur 5
Providing employment to women 5
Providing employment to people with disability 2
Providing employment beyond the required target Up to 10
Setting up operations in a city/town other than the state’s capital 5


What are the stages to apply for this scheme?

There are 2 stages that need to be followed in order to apply to this scheme:

  1. Expression of Interest (EoI)
  2. Request for proposal (RFP)

Documents Required

What are the documents required to apply for this scheme?

The following are the documents required to apply for this scheme.

You can bid online on the following website –

For additional information on this scheme, please click here and here.

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