NEW DELHI : The central government, led by Prime Minister Modi, has promised to provide Rs 4400 crore to the export sector. As part of this, the government today approved a capital restructuring of Rs 4,400 crore for ECGC Limited for a period of five years, from 2021-2022 to 2025-2026. Approved restructuring and help to increase the ECGC's endurance capacity to support further exports through the IPO.
The ECGC was established by the Government of India under the Companies Act in 1957 to promote exports by providing credit insurance services to exporters against risks of non-payment by overseas buyers for commercial and political reasons. It provides export creditors with insurance protection for banks against export credit loan risks. ECGC strives to support the Indian export industry with its experience, expertise and commitment to advancement of India's exports.
The ECGC plays an immense role in supporting the export of sectors that require more workers and promoting bank lending to small exporters' businesses. This leads to their revival. The capital restructuring in the ECGC will enable it to expand its reach to the export-oriented industry, particularly in areas requiring more workers. The approved amount is paid in installments. This resulted in Rs 88,000 crore. This will increase the capacity to underwrite risks to ECGC and will enable the ECGC to support additional exports of Rs 5.28 lakh crore over a period of five years. The central government has made that clear.
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