India infuses ₹4,400 cr into ECGC, CCEA clears stock exchange listing

Last Updated on December 15, 2022 by Admin

[ad_1]



The Indian government yesterday approved capital infusion of ₹4,400 crore into ECGC Ltd., formerly known as Export Credit Guarantee Corporation of India Ltd., over a period of five years—from fiscal 2021-22 to 2025-26. The Cabinet Committee on Economic Affairs (CCEA)also approved listing of ECGC through an initial public offer on the stock exchange.

The approved infusion along with the listing will raise the underwriting capacity of ECGC to support more exports, an official release said.

ECGC was established by the government under Companies Act in 1957 to promote exports by providing credit insurance services to exporters against non- payment risks by the overseas buyers due to commercial and political reasons.

The Indian government yesterday approved capital infusion of ₹4,400 crore into ECGC Ltd., formerly known as Export Credit Guarantee Corporation of India Ltd., over a period of five years—from fiscal 2021-22 to 2025-26. The Cabinet Committee on Economic Affairs (CCEA)also approved listing of ECGC through an initial public offer on the stock exchange.

It also provides insurance covers to banks against risks in export credit lending to the exporter borrowers.

Capital infusion in ECGC will enable it to expand its coverage to export-oriented industries, particularly the labour-intensive sectors.

The approved amount will be infused in instalments, thereby increasing  the  capacity to   underwrite   risks   up to ₹88,000 crore, and this will enable ECGC to issue covers that can support additional exports of ₹5.28 lakh crore over the five-year period in line with the existing pattern, the release said.

ECGC plans to increase its maximum liabilities to ₹2.03 lakh crore from ₹1 lakh crore by 2025-26.

Fibre2Fashion News Desk (DS)



[ad_2]

Source link