September 30, 2021
Capital infusion amount to be released in two instalments of US$67 million each during the current and forthcoming fiscal year.
Additional capital to be raised through market operations. 6 million new jobs to be created as a result.
NEIA scheme to also receive capital infusion of US$ 222 million over a period of five years.
28% of the export goods to be covered by insurance and MSME exporters to be among the beneficiaries of the NEIA.
Union Minister Sh. Piyush Goyal announced the commencement of the listing process for the Export Credit Guarantee Corporation of India (ECGC) following the Cabinet approval of 592 million (Rs 4,400) crore worth of capital infusion into the entity. The ECGC is affiliated with the Ministry of Commerce and Industry and equips exporters with export credit insurance for a five year duration. Of the capital infusion amount, the first instalment of US$ 67 million (Rs 500 crore) will be released followed by the second instalment of the same amount during the forthcoming fiscal year. With this, the ECGC IPO will be endowed with an underwriting capacity of US$ 11 billion (Rs 88,000 crore), and 6 million new jobs are expected to be created through the listing process.The Union Cabinet also approved the infusion of US$ 222 million (Rs 1,650 crore) into the National Export Insurance Account (NEIA) scheme for a five year duration.
Exports have increased to the highest amount of $185 billion until September 2021, as per Sh Goyal’s observation. The listing of the ECGC and the infusion of capital into the NEIA could further bolster exports, cover 28% of the export goods and increase insurance benefits for the MSME sector. The ECGC will continue to insulate exporters against non-payment risks and extend insurance to borrowers.