New Delhi, June 28 (KNN) The Government’s decision of capital infusion of Rs 2,000 crore in the Export Credit Guarantee Corporation (ECGC) will help Capital Goods exporters more, said an expert.
ECGC provides insurance cover on exports to around 200 countries and more than 85 per cent of its customers are MSMEs.
The Cabinet Committee on Economic Affairs’ decision will enhance insurance coverage to micro, small medium enterprises exports.
Funds to ECGC would be infused in the three financial years — Rs 50 crore in 2017-18, Rs 1,450 crore in 2018-19 and Rs 500 crore for 2019-20.
Commenting on this, SC Ralhan, former-President of Federation of Indian Export Organization (FIEO) said, “The move taken by Cabinet Committee on Economic Affairs to provide capital support of Rs 2,000 crore to Export Credit Guarantee Corporation (ECGC) is not going to help all the Micro, Small and Medium Enterprises (MSMEs), former President of FIEO SC Ralhan opined.
Talking to KNN, he said the sum provided to ECGC is going to benefit capital good exporters and not the mercantile exporters.
Ralhan welcomed the move and said MSMEs interested in export of capital goods will benefit from this decision.
The Cabinet Committee on Economic Affairs on Wednesday approved a capital infusion of Rs. 2,000 crore into the Export Credit Guarantee Corporation (ECGC) to be infused over the three financial years 2017-20.
“The infusion would enhance insurance coverage to MSME exports and strengthen India’s exports to emerging and challenging markets like Africa, CIS (Commonwealth of Independent States) and Latin American countries,” as per the statement.
It said that with enhanced capital, ECGC’s underwriting capacity and risk to capital ratio will improve considerably.
ECGC offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and/or commercial risks.
Source: knnindia.co.in