Central Govt. to Expand Indian BPO Promotion Scheme (IBPS) under Digital India

Published Date - 21 June 2018 08:11:29 Updated Date - 21 June 2018 08:12:27

Ministry of Electronics & Information Technology (MeitY) is planning to expand its India BPO Promotion Scheme to 1 lakh seats from current 48,000 seat. It will also set up 5th and India’s largest National data centre (NDC) in Bhopal, Madhya Pradesh with capacity of 5 lakh virtual servers. NDCs host government websites, services and apps, are currently operational at four locations Pune, Hyderabad, Delhi and Bhubaneswar. These initiatives will help to create new job opportunities and also ensure that people in smaller towns find employment closer home.

Allocation of 31,732 seats for BPO Units in smaller towns has created new employment avenues for unemployed youths. This allocation would result in creation of 2 lakh new direct and indirect jobs to youths under IBPS or North East BPO Promotion Scheme (NEBPS).

IBPS facilities the opening of BPOs in smaller cities and till date, there are 91 BPOs in around 27 states. The primary objective of this BPO Promotion Scheme is to enable youths to find employment near their cities and towns.

India BPO Promotion Scheme (IBPS), 2015

As far as the Indian BPO sector is concerned, considering the emerging threats from the next best alternative countries to India such as Philippines, etc., in 2015, the Government of India in the year of 2015 took an initiative and introduced the India BPO Promotion Scheme (IBPS), aiming to further promote the investment in IT/ITES sector for the purpose of expansion of the base of IT industry, and secure balanced regional development.  It would create more employment opportunities for youth as working in BPO enterprises is one of the choices of millions of young professionals.

As per the recommendation of the Nasscom-Kushman and Wakefield Report of 2014, the Central Government formulated this dedicated policy with the aim of fostering the growth of the industry with support from the State Governments for emerging locations. With the availability of a large pool of skilled and efficient workers, the scheme seeks to incentivize establishment of 48,300 seats across the states and UTs, specifically in digitally deficit areas, based on the population percentage as per Census 2011. The scheme was envisaged under the ‘Digital India Programme’, but unfortunately, the benefits under this scheme would be available till the end of 12th Five Year Plan i.e. March 31, 2017.

As per the Department of Electronics and Information Technology, the scheme seeks to establish the seats with an outlay of about Rs. 493 crores for the generation of direct

employment to about 1,44,900 persons keeping three shifts’ operations in considerations.

Expansion of Indian BPO Promotion Scheme

Union govt. plans to expand BPO Promotion Scheme to 1 lakh seats (previously 48,000 seats). The central govt. will also establish India’s Largest National Data Center in Bhopal. Till date, govt. has disbursed Rs. 4 lakh crore as Direct Benefit Transfer (DBT) to poor people. The important features and highlights of IBPS are as follows:-

  • Central govt. will provide financial support upto 50% of expenditure spent on BPO / ITES. This could be capital expenditure (CAPEX) & Operational Expenditure (OPEX) with maximum limit of Rs. 1 lakh / seat.
  • Special incentives will be given for employment of women and specially abled people.
  • Incentives for employment generation beyond the fixed target and wider disbursal within the state particularly in rural areas.
  • Govt. will also encourage local entrepreneurs.
  • Union govt. will provide special considerations for hilly areas like Himachal Pradesh, Uttarakhand, J&K.

BPO Promotion Scheme will create employment for around 1.5 lakh direct jobs through its 3 shift operations. Various Indirect Jobs will also get created. For more details, visit the official website http://meity.gov.in/ibps

Govt. will also construct its fifth National Data Center in Bhopal. This would be the largest NDC with a capacity of 5 lakh virtual servers. National Data Centers has the task to host various govt. websites, services and apps. Till date, there are 4 National Data Centers located in Pune, Hyderabad, Delhi and Bhubaneshwar. For other info. on IBPS scheme, click at https://ibps.stpi.in/

Objectives of IBPS

● Create employment opportunities for the youth, by promoting IT/ITES industry particularly by setting up BPO/ITES operations.


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


Incentives: Under this scheme, financial support up to 50% of expenditure towards Capital Expenditure (Capex) and/or Operational Expenditure (Opex) is provided subject to upper limit of Rs. 1 Lakh/seat. Moreover, special incentives is given for employing women and persons with disability (PwDs), employment generation beyond target and wider dispersal within state. It also gives special consideration for hilly areas and rural areas and also to local entrepreneurs.

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