ECGC to support Indian exporters

NEIA to provide adequate

credit insurance cover

The Central Government has an undertaking known as ECGC Limited under the control of Department of Commerce, Ministry of Commerce & Industry, to support the Indian exporters and bankers by providing cost-effective insurance and trade related services against the risk of non-realisation of export proceeds.

Additionally, the Government has set up the National Export Insurance Account (NEIA) operated by ECGC to provide adequate credit insurance cover to protect long and medium term exporters against both, political and commercial risks of the overseas country and the buyer or & bank concerned. The NEIA trust also provides covers to banks for Buyer’s Credit transactions, which facilitates foreign buyer to pay for project exports from India.

ECGC provides the following services:          

i. Credit insurance schemes (popularly known as ‘Policies’) to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and/ or commercial risks on short-term basis.

ii. Export Credit Insurance covers for Banks (ECIB) to cover the banks’ lending risks involved in extending ‘pre-shipment’ and ‘post-shipment’ finance to exporters on short-term basis.

iii. ECGC also provides Policy and ECIB covers to promote medium and long term exports (MLT), otherwise called Project exports, that are made on credit period exceeding 360 days.

The Government has recently approved ₹2000 crore towards the capital infusion of ECGC during Financial Year FY 2017-18 to FY 2019-20 to enhance its capital base to augment its underwriting capacity. Additionally, this will support in boosting India's exports to emerging markets like Africa, CIS and Latin American countries.

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Lok Sabha.