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New Delhi: The Union Cabinet on Wednesday approved capital infusion of Rs 4,400 crore in state-owned Export Credit Guarantee Corporation (ECGC) and its listing through an initial public offering.
Commerce Minister Piyush Goyal told reporters after the cabinet meeting that the government would infuse Rs 4,400 crore in the ECGC over a period of five years starting from 2021-22.
He also said that an investment of Rs 500 crore will be made immediately. The listing of ECGC is likely to happen next year.
The minister also informed that in the current financial year till September 21, 2021, a total of $185 billion has been exported.
The Cabinet also approved continuation of National Export Insurance Account (NEIA) scheme and grant-in-aid of Rs 1,650 crore over five years. The infusion of capital in NEIA will help tap the huge potential of project exports in the focus market.
ECGC was established to promote exports by providing credit insurance services to exporters against non-payment risks by foreign buyers due to commercial and political reasons. It also provides insurance cover to banks against risks in export credit lending to exporter borrowers.
Infusion of capital into ECGC will enable it to expand its coverage of the export oriented industry, especially in labour-intensive sectors.
ECGC is the market leader in the export credit insurance market in India with about 85 percent market share.
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