Export Credit Guarantee Corporation of India
- September 30, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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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.