Cabinet allows capital infusion of Rs 4,400 crore to Export Credit Guarantee Corporation for greater export insurance cover
ECGC is now expected to be able to provide export insurance cover worth Rs, 88,000 crore, beginning the current financial year, Commerce and Industry Minister Piyush Goyal said.
September 29, 2021 / 04:07 PM IST
Representative image: Reuters
The Cabinet has provided an additional capital infusion of Rs 4,400 crore to the Export Credit Guarantee Credit Corporation and has decided to begin the process of listing it on the stock market.
"Of the announced amount, Rs 500 crore will be provided immediately, while Rs 500 crore to be provided next year," Commerce and Industry Minister Piyush Goyal said.
This expanded capital is expected to provide the ECGC greater cushion to provide insurance to exporters in the country. The government estimates Rs 88,000 crore worth of export insurance can be provided by ECGC as a result, the Minister said.
Export Credit Guarantee Credit Corporation provides a range of credit risk insurance covers to exporters against loss in export of goods and services. It also offers Export Credit Insurance covers to banks and financial institutions to enable exporters to obtain better facilities from them. ECGC also ensures overseas investment insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.
The Cabinet has also approved capital infusion of Rs 1,650 crore in the National Export Insurance Account (NEIA) trust which provides financing to India's project exports and provides insurance. A 20-fold rise in the NEIA's ability to provide export cover is expected, at Rs 33,000 crore, Goyal said.