The National Skill Development Corporation (NSDC), in collaboration with a coalition that includes HRH Prince Charles’ British Asian Trust, the Michael and Susan Dell Foundation, The Children’s Investment Fund Foundation, HSBC India, JSW Foundation, and Dubai Cares, as well as FCDO (UK Government) and USAID as technical partners, announced the launch of the first-of-its-kind and largest Impact Bond for Skilling.
The Skill Impact Bond (SIB) is also the first impact bond incorporating public, private, and a public-private partnership organisation, the National Skills Development Corporation (NSDC).
Over the next four years, the group will distribute a $14.4 million fund to 50,000 young people in India. 60 percent of the target population is women and girls, and the goal is to provide them with skills and vocational training, as well as wage-employment opportunities in Covid-19 recovery areas including retail, fashion, healthcare, and logistics.
Through knowledge exchange and the promotion of best practices, the collaboration among worldwide partners aims to strengthen India’s skilling and TVET ecosystem. Stakeholders will work together to promote effective interventions, support research, and improve the skill development program’s effectiveness.
“India’s aspirational youth require skills for the jobs that meet the demand of the industry. Core functional knowledge and competencies enhance an individual’s ability to secure and retain a job and improve their potential to earn. Skill Impact Bond is a collaborative effort of National Skill Development Corporation and esteemed global organisations and people who share their vision to improve skilling outcomes in India. This landmark financial instrument applies an entrepreneurial approach to philanthropy and ensures accountability which contributes to the achievement of set objectives. The project has the potential to make a transformational impact especially in the lives of women,” said Mr. A.M. Naik, Chairman, National Skill Development Corporation, and Group Chairman, Larsen and Toubro Ltd.
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The British Asian Trust gathered the outcome funders for an impact bond for skilling. To the design of an impact bond, each funder offers their particular capabilities, perspectives, knowledge, and learnings from the skilling and education sectors. The result fund is supported by CIFF, HSBC India, JSW Foundation, and Dubai Cares. The risk investors, NSDC and MSDF, have committed US$4 million to give upfront working money to the service providers in order to conduct the programme for the duration of the impact bond, which is four years in this case. Risk investor funds are re-invested each year if the desired outcome is attained.
The training will be delivered by NSDC’s affiliated training partners, who have been evaluated and chosen based on their qualifications. Apollo Medskills Ltd, Gram Tarang Employability Training Services Pvt Ltd, Learnet Skills Ltd, Magic Bus India Foundation, and PanIIT Alumni Foundation are among the organisations involved.
The agreed outcomes will be assessed by an independent evaluator, Oxford Policy Management. Dalberg Advisors, the performance manager, will regularly measure outcomes so that delivery partners can reiterate and adapt to stay on track to achieve outcomes. Nishith Desai Associates is the legal partner for the impact bond.