India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat
A MeitY grant scheme that pays Viability Gap Funding of up to ₹1 lakh per BPO/ITeS seat, covering half of a unit's eligible capital and operational costs in smaller Indian locations. Implemented by STPI, open on a rolling basis.
- Funding amount
- ₹1L (grant)
- Funding type
- Grant
- Provider
- Ministry of Electronics and Information Technology (MeitY) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The India BPO Promotion Scheme (IBPS) is a MeitY initiative that operates under the Government of India's Digital India Programme. Its funding model is Viability Gap Funding (VGF), and the money is aimed at a specific problem: making BPO and ITeS delivery operations financially workable in places that cannot match metro cost structures on their own.
The scheme serves two connected purposes. One is to spread IT-enabled work beyond the large cities, so that young people in smaller locations can find jobs close to home instead of migrating. The other is to pull fresh investment into the IT and ITeS sectors by lowering what it costs to open and run a unit.
The Software Technology Parks of India (STPI) is the nodal agency, handling implementation and the operational side of the scheme. The overall target is 48,300 BPO/ITeS seats. The North-Eastern region sits outside that seat target, while hilly states — Himachal Pradesh, Jammu & Kashmir and Uttarakhand — are given special consideration so that development reaches more evenly across the country.
There is no fixed closing date. Proposals are accepted on a rolling basis through the STPI portal, and the official scheme details are listed on MeitY's schemes and services page.
Highlights
- Viability Gap Funding grant of up to ₹1 lakh per BPO/ITeS seat, capped at 50% of eligible CAPEX and OPEX
- Rolling applications — the scheme has no fixed deadline
- Extra incentives for women's employment, differently abled hiring, local entrepreneurs and units outside state capitals
- Targets 48,300 BPO/ITeS seats across India, excluding the North-Eastern region
- Run by MeitY under the Digital India Programme, with STPI as nodal agency
- Special consideration for Himachal Pradesh, Jammu & Kashmir and Uttarakhand
Who can apply
IBPS is open to companies and entrepreneurs who want to set up and run a Business Process Outsourcing (BPO) or ITeS delivery unit.
- Location: the unit has to come up in a location that qualifies under the scheme. The North-Eastern region falls outside the 48,300-seat target, and hilly states such as Himachal Pradesh, Jammu & Kashmir and Uttarakhand receive special consideration.
- Seats: the applicant must create the number of BPO/ITeS seats that the scheme approves.
- Jobs: the unit has to generate employment, with the clear emphasis on work for young people.
The published eligibility conditions do not list DPIIT recognition or MSME registration, and no separate founder-level requirement is stated. The real test is the project: eligible BPO/ITeS capacity, in a qualifying place, producing jobs.
India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
IBPS support comes as Viability Gap Funding (VGF) — described as a non-repayable grant, so there is nothing to return and no equity handed over in exchange.
- Base support: up to 50% of eligible CAPEX and OPEX, subject to a ceiling of ₹1 lakh per BPO/ITeS seat.
- Women's employment: a 5% incentive where at least 50% of the workforce is women.
- Differently abled hiring: a 2% incentive for employing 4% differently abled persons.
- Exceeding targets: up to 10% extra for beating the employment targets set for the unit.
- Local entrepreneurs: a 5% incentive.
- Outside state capitals: a further 5% for units established outside a state capital.
- Training: a training incentive covering regular employees, which supports skill building inside the workforce.
Every one of these add-ons sits inside the ₹1 lakh per seat ceiling, not on top of it. Releases are triggered by claims filed through the portal and backed by performance reports and verified expenditure, so the grant is paid against demonstrated progress rather than upfront.
About the provider
India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat is offered by Ministry of Electronics and Information Technology (MeitY), a government body. As a government-backed grant, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Proposals are assessed, not queued. Once a bid is submitted through the STPI portal, it goes before the competent authority constituted for the scheme, and that authority decides whether the project deserves backing.
The review examines whether the applicant genuinely intends to build and run BPO/ITeS capacity, whether the chosen site qualifies under the scheme, and whether the proposal can realistically deliver the approved number of seats along with the jobs that come with them. The authority also weighs the viability of the proposed operation and the impact it would create, to confirm the project aligns with what the scheme is trying to achieve.
Approval is what unlocks the funding. After that, the company sets up the unit as approved, and claims are filed through the portal with performance reports and verified expenditure — that is the step which actually triggers the VGF payout.
Documents you’ll need
Before you apply to India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat is best suited for startups in India seeking non-dilutive funding of ₹1L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding can a unit receive under the India BPO Promotion Scheme?
Support is calculated as Viability Gap Funding of up to 50% of your eligible capital and operational costs, with a hard ceiling of ₹1 lakh for each BPO/ITeS seat you create. The ceiling therefore scales with the number of approved seats rather than with your total project cost. Several percentage incentives can be added on top of the base amount, but all of them must fit inside the same ₹1 lakh per seat limit.
Is the IBPS money a loan or does the scheme take equity?
Neither. The scheme's support is described as a non-repayable grant, so the money is not returned and no stake in your company changes hands in exchange for it. It is true gap funding, designed to close the viability shortfall rather than to be repaid.
Who is eligible to apply?
Any company or entrepreneur that intends to establish and run a BPO or ITeS unit in an eligible location, create the approved number of seats, and generate employment — particularly for young people — can apply. There is no separate founder-level criterion stated in the scheme's published conditions.
Is there a last date to submit an application?
No. IBPS runs on a rolling basis and stays open, so a proposal or bid can be submitted at any point through the STPI portal. That said, seats under the scheme's 48,300-seat target are finite, so there is no advantage in waiting.
Which locations qualify for setting up a BPO/ITeS unit?
Units can be established in eligible locations across the country, but the North-Eastern region is not part of the scheme's 48,300-seat target. Hilly states — Himachal Pradesh, Jammu & Kashmir and Uttarakhand — are given special consideration, which reflects the scheme's aim of spreading IT-enabled employment more evenly.
What special incentives are available beyond the base VGF?
Within the ₹1 lakh per seat ceiling, the scheme offers a 5% incentive where at least 50% of the workforce is women, 2% for employing 4% differently abled persons, up to 10% for exceeding your employment targets, 5% for local entrepreneurs, 5% for units set up outside a state capital, and a training incentive for regular employees.
Do I need DPIIT recognition or MSME registration to apply?
The eligibility conditions published for IBPS do not mention DPIIT recognition or MSME registration, so neither is listed as a prerequisite. What the scheme looks at is the project itself — BPO/ITeS capacity in a qualifying location, approved seats, and the jobs created from it.
How do I apply for the India BPO Promotion Scheme?
Begin on the STPI portal, which is the designated route for the scheme. Read the guidelines thoroughly, then prepare and submit a proposal or bid setting out your plan to establish BPO/ITeS seats, your business plan, and how you will generate employment. Upload the supporting documents the guidelines specify. The proposal then goes through evaluation by the competent authority. MeitY also lists the scheme on its schemes and services page at meity.gov.in.
What documents are typically needed?
The scheme asks for a proposal or bid plus the supporting documents specified in the scheme guidelines, so that list should be checked there before submitting. Your proposal needs to detail the business plan and the employment generation strategy. Once the unit is operating, claims for financial assistance are supported by performance reports and verified expenditure, so those records should be maintained from day one.
How large is the programme overall?
IBPS is targeting the establishment of 48,300 BPO/ITeS seats across India. The North-Eastern region is excluded from that seat target, and hilly states are given special consideration within it.
Who offers India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat?
India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat is offered by Ministry of Electronics and Information Technology (MeitY), a government body. It is provided as non-dilutive funding.
More funding from Ministry of Electronics and Information Technology (MeitY)
Ministry of Electronics and Information Technology (MeitY) runs 6 other programs listed on startupfunds — compare them before you decide where to apply.
Alternatives to India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat
Not sure India BPO Promotion Scheme (IBPS): ₹1 Lakh VGF Grant per BPO Seat is the right fit, or already applied? These are other grants open to Indian startups that founders shortlist alongside it.
Questions from founders
Ask anything about eligibility, documents or the process — answered by the community.
No questions yet — be the first to ask.