Export Credit Guarantee Corporation of India Limited, was established
in the year 1957 by the Government of India to strengthen the export
promotion drive by covering the risk of exporting on credit.
Being essentially an export promotion organisation, it functions under
the administrative control of the Ministry of Commerce, Government of
India. It is managed by a Board of Directors comprising representatives
of the Government, Reserve Bank of India, banking, insurance and
exporting community. ECGC, the fifth largest credit insurer of the
world, presently covers 17.31% of India's total exports. The present
paid-up capital of the company is Rs.150 crores, which is expected to be
enhanced to Rs.500 crores by the year 2002.
ECGC provides a range of credit risk insurance covers to exporters
against loss in export of goods and services, and also offers guarantees
to banks and financial institutions to enable exporters obtain better
facilities from them. Exporters have a lot to benefit from ECGC as it
provides ---
- insurance protection to exporters against payment risks
- provides information on credit-worthiness of overseas buyers
- provides information on about 180 countries with its own credit
ratings
- guidance in export related activities
- makes it easy to obtain export finance from banks/financial
institutions
- assists exporters in recovering bad debts
The scope of the Export Promotion Capital Goods Scheme (EPCG) has
been enlarged, following the amendments to the EXIM Policy on 31st
March, 1995. The major provisions of the scheme are as follows:
