New Delhi: The National Skill Development Corporation (NSDC) today launched the first-of-its-kind and the largest Impact Bond’ for skilling in India in collaboration with global partners, involving a $14.4-million fund which will benefit 50,000 youth by making them employment-ready.
Along with the NSDC, the global coalition comprises HRH Prince Charles’ British Asian Trust, the Michael & Susan Dell Foundation (MSDF), the Children’s Investment Fund Foundation (CIFF), HSBC India, JSW Foundation, and Dubai Cares, with FCDO (UK Government) and USAID as technical partners.
“The Skill Impact Bond (SIB) is also the first impact bond involving public, private partners and a public-private partnership organization, NSDC,” a statement said.
CIFF HSBC Incha. JSW Foundation and Dubai Care to support the outcome fund. NSDC and MSDF are the risk investment that provides upfront working capital to the service providers to implement the programme for the lifetime of the impact bond, in this case, four years.
If outcome delivery is achieved, risk investor funding is then reinvested each year, the statement said. “The coalition has brought together a $14.4-million fund to benefit 50,000 young people in India over four years,” it added.
The target group includes 60 percent women and girls and the objective is to equip them with skills and vocational training and provide access to wage employment in COVID-19 recovery sectors including retail, apparel, healthcare, and logistics.
The stakeholders will work towards promoting effective in tors that have committed $4 million-interventions, supporting research, and enhancing the impact of the skill development programme.
“Skill Impact Bond is a collaborative effort of NSDC and esteemed global organizations and people who share their vision to improve skilling outcomes in In dia. This landmark financial instrument applies an entrepreneurial approach to philanthropy and ensures accountability. The project has the potential to make a transformational impact, especially in the lives of women,” said AM Naik, Chairman, NSDC, and Group Chairman, Larsen & Tou bro Ltd.