The National Bank for Agriculture and Rural Development (NABARD) has fully subscribed to the National Skill Development Corporation's (NSDC) maiden issuance of Zero Coupon Zero Principal (ZCZP) instruments aggregating ₹4 crore on the Social Stock Exchange (SSE) platform of the National Stock Exchange (NSE). According to reports from The Hindu BusinessLine, this marks NSDC's first issuance of such instruments on the social stock exchange platform.
The funds raised through this ZCZP issuance, which is part of a project with an estimated outlay of ₹11.25 crore, are specifically aimed at creating sustainable overseas employment opportunities for 600 rural youth belonging to Other Backward Classes (OBC) in Madhya Pradesh. As reported by The Hindu BusinessLine, under the project structure, NABARD is participating through subscription to the ZCZP issue, while the Government of Madhya Pradesh is expected to provide outcome-linked funding of ₹5.60 crore upon achievement of agreed employment outcomes. The balance funding is proposed to come through beneficiary contributions.
The project aims to equip rural youth with internationally relevant skills required for employment opportunities in Japan and Germany. According to NABARD's statement, beneficiaries will receive comprehensive support including language training, technical skill development, certification, cultural orientation and end-to-end support for overseas placement, including documentation and deployment assistance. As reported by The Hindu BusinessLine, the initiative seeks to create durable livelihood opportunities and improve income prospects for rural households through access to global labour markets.
ZCZP instruments carry no financial returns for subscribers, with proceeds being deployed to generate social returns by strengthening livelihoods through skill development. According to NSDC, this approach represents a distinctive feature emphasizing outcomes rather than activities. As reported by The Hindu BusinessLine, the programme is designed to focus on verified overseas employment and sustained livelihood enhancement rather than merely training completion, representing an important shift towards evidence-based development financing where social impact remains central to programme design and implementation.
