Under the leadership and visionary guidance of Chief Minister Dr. Mohan Yadav, the Madhya Pradesh Government’s Backwards Classes and Minorities Welfare Department has taken a significant step towards youth empowerment and innovation. At a ceremony held at the National Stock Exchange (NSE) campus in Bandra-Kurla Complex, Mumbai, the country’s first Social Impact Bond Framework project was officially listed on the NSE Social Stock Exchange platform, accompanied by a bell-ringing ceremony and the signing of a tripartite Memorandum of Understanding (MoU).
Minister of State (Independent Charge) for Backwards Classes and Minorities Welfare Smt. Krishna Gaur described the initiative as a matter of great pride for the state and the department. She said Madhya Pradesh has become the first state in the country to successfully implement a Social Stock Exchange mechanism for transparent and effective financial management of social welfare schemes, in line with the vision of Prime Minister Shri Narendra Modi. The department has also become the first in the country to adopt the innovative Social Impact Bond financing model for student welfare.
International Employment Opportunities in Japan and Germany to Empower Youth
Smt. Gaur said the project was implemented through the collaborative efforts of the Madhya Pradesh Government, the National Skill Development Corporation (NSDC), NABARD and the National Stock Exchange (NSE). Under the initiative, 600 promising young people from Other Backwards Classes (OBCs), particularly those from remote areas of the state, will receive quality residential skill training, intensive instruction in the languages of their destination countries and specialized vocational training. Of these, 300 youth will be prepared for employment opportunities in Japan and 300 in Germany.
The project’s oversubscription by investors reflects confidence in its credibility and social impact. International employment opportunities are expected to boost beneficiaries’ confidence, self-esteem and financial independence.
Transparent, Outcome-Based Financing Framework
In line with Chief Minister Dr. Yadav’s vision, the project is being financed through a Zero Coupon Zero Principal (ZCZP) instrument listed on the Social Stock Exchange. Under the outcome-based funding model, the Madhya Pradesh Government will fund 50% of the total training cost, 35% will be financed through the Social Impact Bond, and the remaining 15% will be contributed by the participating OBC youth.
Risk-Mitigated and Outcome-Oriented Implementation
To ensure transparency and accountability, an authorised independent third party will conduct a Social Impact Assessment of the project. The state government will reimburse NSDC for 50% of the project cost only after a positive independent assessment and the beneficiary’s successful placement abroad. If these outcomes are not achieved, the state government will incur no financial liability, with NSDC bearing the entire financial risk as the risk funder.
