Bhopal (Madhya Pradesh): The Social Justice Department is unlikely to roll out the Social Impact Bond (SIB) in the current financial year as two NGOs roped in by the department have refused to work under the SIB model.
Sources in the Social Justice Department told The Free Press Journal that the department had identified two NGOs working in the social welfare field, particularly for Divyangs.
One is Atypical Advantage and the other is Jaipur-based NGO Mahaveer Artificial Limb, popularly known for Jaipur Foot. Both organisations are reluctant to work under the Social Impact Bond framework. The department has already signed agreements with both for undertaking work.
One of the NGOs works on providing placements for Divyangs, while the other distributes artificial limbs.
The department is now making efforts to identify an agency willing to operate under the SIB model. At the same time, it is trying to find a financier for the proposed agency.
When contacted, Principal Secretary, Social Justice Department, Sonali Ponkshe Vayankar told The Free Press Journal, "We are hopeful of finding suitable agencies and a financier under the Social Impact Bond concept. NGOs are being identified that can accept the SIB model."
Interestingly, the Social Justice Department was the first department to initiate steps towards implementing SIB. However, the Backward Class Department moved ahead of it in this regard.
What Is Social Impact Bond
Under the Social Impact Bond (SIB) model, payment to an agency is made only when its work is found to be satisfactory. It is also known as Pay for Success.
SIBs are innovative financial contracts in which private investors fund social programmes run by service providers or agencies. The Government makes payment to the investors only if specific, measurable social outcomes are achieved, thereby transferring the financial risk of failure from the public to the private sector.
Social Impact Bonds are listed on the National Stock Exchange (NSE) through its specialised Social Stock Exchange (SSE) segment to enable pay-for-success financing. These bonds require stringent disclosures, including independent impact auditing, to facilitate investment and raise capital for social enterprises such as those in healthcare.
