Centre approves capital infusion of 4,400 crore rupees into ECGC to boost export sector
The Cabinet has approved 4,400 crore rupees investment in ECGC Ltd. (formerly known as Export Credit Guarantee Corporation of India Ltd.) in five years to provide support to exporters as well as banks. Briefing media, Commerce and Industry Minister Piyush Goyal said, Capital Infusion and planned IPO to increase ECGC’s underwriting capacity up to 88,000 crore and propel additional exports of 5.28 lakh crore over a five-year period.
It will help create 59 lakh new jobs including 2.6 lakh informal sector. This decision is part of a series of export-related schemes and initiatives taken by the Government over the last few years.
Extension of Foreign Trade Policy (2015-20) has been approved up to 31st March next year. The cabinet has also decided to release 56,027 crore rupees this month to liquidate all pending arrears. These measures will provide a boost to the exports sector.
Cabinet has also approved the listing of Export Credit Guarantee Corporation Ltd. through the Initial Public Offer on the stock Exchange. The Company intends to increase its maximum liabilities to 2.03 lakh crore rupees from 1.00 lakh crore rupees by 2025-26.
The government also gave its nod to the continuation of the National Export Insurance Account (NEIA) scheme and infusion of 1,650 crore Grant-in-Aid over five years. Capital infusion in NEIA Trust will help tap the huge potential of project exports in the focus market. NEIA will be able to support project exports worth up to 33,000 crore rupees. It will help create 2.6 lakh new jobs, including around 12,000 informal sectors.