Government has approved capital infusion of Rs 4,400 crore to ECGC Ltd. (formerly known as Export Credit Guarantee Corporation of India Ltd.) over a period of five years, i.e. from FY 2021-2022 to FY 2025- 2026 to boost the exports sector.
The approved amount will be infused in instalments thereby increasing the capacity to underwrite risks up to Rs 88,000 crore and this will enable ECGC to issue covers that can support additional exports of Rs 5.28 lakh crore over the five-year period in line with the existing pattern.
Further, the cabinet has approved listing of M/s. Export Credit Guarantee Corporation Ltd. (ECGC), an unlisted CPSE through the Initial Public Offer (IPO) on the Stock Exchange under the Securities and Exchange Board of India (SEBI).
The Company intends to increase its maximum liabilities to Rs 2.03 lakh crore from Rs 1.00 lakh crore by 2025-26. It is expected that it will help to create 59 lakh new jobs including 2.6 lakh in formal sector.
ECGC Limited is a wholly-owned CPSE of Government of India, set up with the objective to promote exports by providing credit insurance services to exporters against non- payment risks by the overseas buyers due to commercial and political reasons. It also provides insurance covers to banks against risks in export credit lending to the exporter borrowers.