The Export Credit Guarantee Corporation (ECGC), wholly owned by the Government of India, was set up in 1957 with the objective of promoting exports from the country by providing credit risk insurance and related services.
The ECGC Ltd has supported over 16,000 exporters with an aggregate value of business covered to the tune of Rs 6.68 lakh crore in 2022-23 and it is expected to increase to more than Rs 10 lakh crore this fiscal, Commerce and Industry Minister Piyush Goyal said on Friday.
The Export Credit Guarantee Corporation (ECGC), wholly owned by the Government of India, was set up in 1957 with the objective of promoting exports from the country by providing credit risk insurance and related services.
Over the years, it has designed different export credit risk insurance products to suit the requirements of Indian exporters and commercial banks extending export credit.
"The business covered value is expected to increase to more than Rs 10 lakh crore in the current fiscal," Goyal told reporters here.
He added that in the next four months, all procedures at the company would be made completely digital and grievance redressal mechanism to be implemented over video conference.
The minister said that extended cover under export credit insurance for banks scheme with enhanced cover of 90 per cent would be extended to accounts with limits up to Rs 50 crore.
He also said that the digitisation of processes at ECGC will enhance the convenience for the exporters.
Last year, the company extended cover under Export Credit Insurance for banks (ECIB) scheme for the accounts with export credit working capital limits up to Rs 20 crore sanctioned by the banks (excluding traders and GJD exporters) with enhanced cover of 90 per cent.
Four banks - SBI, Central Bank of India, Bank of Maharashtra and Saraswat Bank have so far opted for the enhanced cover.
The experience under the cover has been satisfactory in terms of low default ratio in the last one year.
"The extended cover under the scheme has resulted in easing of interest rates on the credit/loans obtained from the banks," Goyal said announcing that the benefit of the enhanced cover will be extended to the accounts with limits up to Rs 50 crore for these four banks without any additional cost.
It is expected that around 3,000 exporter-borrower accounts will benefit from this.
For nine banks where six-year claim to premium ratio (CPR) is less than 70 per cent, cover for accounts with export credit working capital limits up to Rs 20 crore will be offered enhanced cover of 90 per cent without any additional cost provided the banks are extending the export credit at an interest rate corresponding to the accounts rated 'AA' (or with equivalent rating)..
ECGC CMD M Senthilnathan said that 100 per cent cover will be provided for existing policyholders where 'No Claim Bonus' is 50 per cent and the policy proposal has been received directly from the exporters and not through insurance brokers..
ECGC Ltd. envisages to provide claim and other insurance related services to exporters and banks digitally after implementation of the upgraded software system which is likely to be implemented within the next six months.