ECGC mulls credit insurance for Indian cos' foreign arms

ECGC is likely to introduce credit insurance cover for the overseas-based subsidiaries of Indian companies, a top company official said here.

Under the proposed scheme, which is likely to be launched within a month's time, ECGC will provide cover to 85 percent of the project cost to the overseas-based subsidiaries of the Indian companies.

"We are all set to launch credit insurance cover for the overseas-based subsidiaries of Indian companies within a month's time," ECGC chairman and managing director Geeta Muralidar told reporters here.

She was speaking on the sidelines of 60th Foundation Day ceremony of ECGC.

ECGC, formerly known as Export Credit Guarantee Corporation of India, provides a range of credit risk insurance covers to exporters, banks and financial institutions.

"We have already got queries for the product from 2-3 such companies here, which are into sectors like telecom and construction," Muralidar said.

Moreover, ECGC is also trying to have some kind of tie-up with New Development Bank (NDB) for BRICS countries.

"We are trying to tie-up with NDB of BRICS as per which we can provide some cover to those companies which will be financed by it in future," she said.

Immediately after the NDB meet, which will take place in New Delhi on October 13, ECGC will be hosting a day-long training programme for export credit agencies at Goa on October 14, she informed.