Cabinet approves Rs 4,400 crore capital infusion into Export Credit Guarantee Corp in 5 years
Published On: Wednesday, September 29, 2021 | By: Team KnowMyStock
The Union Cabinet today(29thSept.2021) approved capital infusion of Rs 4,400 crore in the state-owned Export Credit Guarantee Corporation (ECGC) and its listing through an initial public offering. The government will inject Rs 4,400 crore in the ECGC over a period of five years beginning 2021-22, said Commerce Minister Piyush Goyal told reporters after the Cabinet meeting. He also said Rs 500 crore infusion will be done immediately. The listing of ECGC is likely to happen next year. The minister also informed that exports have totaled Rs 185 billion till September 21, 2021, in the current fiscal.
he Cabinet also approved continuation of the National Export Insurance Account (NEIA) scheme and infusion of Rs 1,650 crore Grant-in-Aid over five years. Capital infusion in NEIA will help tap the huge potential of project exports in focus market.
ECGC was established 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.
Tags: Export Credit Guarantee Corporation (ECGC) capital infusion approval of Union cabinet National Export Insurance Account (NEIA)
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