Skill Impact Bonds Initiatives

Skill Impact Bonds Initiatives

News: Skill Impact Bond Initiative has skilled nearly 18,000 first-time job seekers, 72% of whom are women.

About the initiative:
• Skill Impact Bond (SIB) is India’s first development impact bond for skilling and employment.
• It was launched by National Skill Development Corporation (NSDC) in collaboration with global partners.
• It is a public-private partnership (PPP) model that shifts its focus from inputs like training and certification to outcomes like job placement and retention for India’s youth.

What are impact bonds?
• Impact bonds are innovative financing instruments that leverage private sector capital and expertise, with a focus on achieving results. It shifts the focus from inputs to performance and results.
• Rather than a government or a donor financing a project upfront, private investors (risk investors) initially finance the initiative and are repaid by ‘outcome funders’, only if agreed-upon outcomes are achieved.
• The outcomes to be measured are agreed upon at the outset and independently verified.