New Delhi: The Cabinet Committee on Economic Affairs on Wednesday approved the capital infusion of Rs 2000 crore for strengthening of Export Credit Guarantee Corporation (ECGC).
“The amount would be infused in the three financial years i.e. Rs.50 crore in 2017-18, Rs.1450 crore in the year 2018-19 and Rs.500 crore for 2019-20,” an official release said.
The infusion would enhance insurance coverage to MSME exports and strengthen India’s exports to emerging and challenging markets like Africa, CIS and Latin American countries.
“Increased capital infusion will help ECGC to diversify its product portfolio and provide cost effective credit insurance helping exporters to gain a stronger foothold in the difficult markets. Covers from ECGC will help in improving competitive positon of India exporters in International markets,” it said.
ECGC provides Export Credit Insurance Services to facilitate exports from the country. ECGC covers exports to around 200 countries in the world. The ECGC offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and / or commercial risks.