Export Credit Guarantee Corporation of India

Subject – Economy

Context – Cabinet approves ECGC listing, ₹6,000 crore for export cover

Concept –

The Cabinet on Wednesday approved an infusion of more than ₹6,000 crore into entities providing export insurance cover to facilitate additional exports worth in excess of ₹5.6 lakh crore over the next five years.
It also approved the listing of state-run Export Credit Guarantee Corporation (ECGC) on the stock exchanges.

About ECGC –

ECGC was established by the Government of India under the Companies Act in 1957.
Aim: To promote exports by providing credit insurance services to exporters against non-payment risks by the overseas buyers due to commercial and political reasons. It also provides insurance covers to banks against risks in export credit lending to the exporter borrowers
Nodal Ministry: It functions under the administrative control of the Ministry of Commerce & Industry and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community.
The Government of India had initially set up Export Risks Insurance Corporation in 1957.
- After the introduction of insurance covers to banks during the period 1962-64, the name was changed to Export Credit & Guarantee Corporation Ltd in 1964.
- It was changed to ECGC Ltd in August 2014.