Union Cabinet has approved fund infusion in Export Credit Guarantee Corporation and its listingGovernment will infuse Rs 4,400 crore in Export Credit Warranty Corporation (ECGC) and the entity will also be noted through an initial public offer (IPO).
The Union Cabinet cleared the proposal on Wednesday to this effect.Speaking to media individuals after the Cabinet meeting, Commerce Minister Piyush Goyal stated that ECGC's listing may happen next year.
Out of the total Rs 4,400 crore, an amount of Rs 500 crore will be offered to the business on instant basis, he informed while elaborating on fund infusion in the state-owned entity.ECGC is governed by the Commerce Ministry and it offers export credit insurance support to exporters.Fund infusion in ECGC will assist the entity to spread is protection, especially towards labour-intensive sectors.
The company is a market leader in the credit insurance coverage sector in the country with more than 80 percent market share.The cash to be put into ECGC will supply greater legroom to the business while offering insurance coverage cover to exporters.
Mr Goyal estimated that it will be able to offer export insurance worth Rs 88,000 crore after this fund infusion.Apart from this, the Union Cabinet also cleared the continuation of the National Export Insurance Account (NEIA) scheme and an arrangement of Rs 1,650 crore grant-in-aid for it up to a period of five years.The fund infusion in this entity will assist exploit the capacity of exports in crucial focus locations, the minister stated.