Export Promotion Capital Goods Scheme (E.P.C.G.)

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 ---

1. insurance protection to exporters against payment risks
2. provides information on credit-worthiness of overseas buyers
3. provides information on about 180 countries with its own credit ratings
4. guidance in export related activities
5. makes it easy to obtain export finance from banks/financial institutions
6. 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: