Skill Impact Bond Initiative

Skill Impact Bond Initiative

• Under the Skill Impact Bond (SIB) initiative, nearly 18,000 first-time job seekers have been skilled, with 72% of them being women.
• The Skill Impact Bond (SIB) is India’s first development impact bond for skilling and employment.

What are Development Impact Bonds ?

• A development impact bond is a financial tool that leverages private-sector funding to address social and development challenges.
• It leverages private-sector capital and expertise.

What is Skill Impact Bond ?

• Launched by the National Skill Development Corporation (NSDC) in collaboration with global partners.
• It is a public-private partnership (PPP) model that emphasizes providing employment opportunities to trainees rather than just issuing training certificates.
• Aim: To benefit 50,000 young Indians (over 4 years), with a focus on empowering women (60% of beneficiaries).
• The SIB addresses the impact of the pandemic on women and employment, removes barriers to women’s workforce retention, and leverages private sector capital and expertise.
• It also works towards strengthening India’s technical and vocational education ecosystem through knowledge exchange and mainstreaming good practices.

Practice Questions for Prelims

Consider the following statements about Skill Impact Bond:
1. It is launched by National Skill Development Corporation (NSDC)
2. It works on PPP model aimed at providing employment opportunities to trainees.

Which of the above statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Ans. c)

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