Mumbai: The National Skill Development Corporation (NSDC) listed its maiden Zero Coupon Zero Principal (ZCZP) instrument on the National Stock Exchange’s (NSE) Social Stock Exchange on Thursday, October 22. The initiative aims to create overseas employment opportunities for 600 rural youth from Other Backward Classes (OBCs) in Madhya Pradesh.
The programme will focus on preparing candidates for jobs in Japan and Germany through specialised training, certification and placement assistance.
Rs 11.25 Crore Project To Support Rural Youth
The project has an estimated outlay of Rs 11.25 crore. NABARD has fully subscribed to NSDC’s maiden ZCZP issue worth Rs 4 crore.
The Madhya Pradesh government is expected to contribute Rs 5.60 crore after agreed employment outcomes are achieved. The remaining amount is proposed to come from beneficiaries.
The initiative will provide foreign-language training, technical skills, cultural orientation, certification and support for documentation and international placements.
Focus On Employment Outcomes
The programme represents a shift towards outcome-based financing, where success is measured through verified employment rather than simply the number of candidates trained.
NSDC CEO Arunkumar Pillai has advocated innovative funding models involving government support, corporate social responsibility (CSR) contributions and impact investors to expand vocational training opportunities.
The listing ceremony was attended by Union Minister of State Jayant Chaudhary, Madhya Pradesh Minister Krishna Gaur, Skill Development Secretary Debashree Mukherjee and NSE MD and CEO Ashishkumar Chauhan.
How ZCZP Instruments Work
The NSE Social Stock Exchange allows eligible social enterprises and non-profit organisations to raise funds for social welfare projects under the Securities and Exchange Board of India (SEBI) framework.
Unlike conventional financial instruments, ZCZP instruments offer no interest payments and do not require repayment of the principal amount.
Funds raised through these instruments are directed towards specified social initiatives, with disclosures and impact reporting helping ensure transparency and accountability.
Public-Private Partnership For Skill Development
NABARD Chairman Dr Shaji Krishnan V has emphasised the importance of outcome-based financing and credible verification in supporting high-impact projects.
NSDC’s initiative highlights how government agencies, financial institutions and private stakeholders can collaborate to improve employment prospects for underserved rural communities.
