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Govt Approves Rs. 4,400 Cr Investment In ECGC To Support Exporters, Banks

The Centre has also approved capital infusion of Grant-in-aid (Corpus) of Rs. 1,650 Crore to National Export Insurance Account (NEIA) from Financial Year (FY) 2021-22 to FY 2025-26.

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The Union Cabinet led by Prime Minister Narendra Modi, on Wednesday, approved the capital infusion of Rs 4,400 crore to ECGC, (formerly known as Export Credit Guarantee Corporation of India) from Financial Year (FY) 2021-22 to FY 2025-26. 

"The approved infusion along with efforts made to suitably synchronize with the listing process of ECGC through the Initial Public Offering will increase the underwriting capacity of ECGC to support more exports," stated Cabinet Committee on Economic Affairs (CCEA) press release. 

The move by the centre government is going to create 59 lakh new jobs, along with 2.6 lakh in the formal sector. Apart from that,  capital infusion and planned Initial Public Offering (IPO) will boost up ECGC’s underwriting capacity up to Rs 88,000 crore and propel additional exports of Rs 5.28 lakh crore in next five years, the statement added. 

In addition, in terms of the report ‘Export to Jobs’ published by the World Bank and International Labour Organisation in February 2019, ₹5.28 lakh crore exports will lead to the formalization of 2.6 lakh workers. Further, the total number of workers (both formal and informal) will increase by 59 lakhs as per the report.

Meanwhile, ECGC was established by the Government of India under the Companies Act in 1957 to promote exports by providing credit insurance services to exporters against non-payment risks by the overseas buyers due to commercial and political reasons. 

The Centre has also approved capital infusion of Grant-in-aid (Corpus) of Rs. 1,650 Crore to National Export Insurance Account (NEIA) from Financial Year (FY) 2021-22 to FY 2025-26.


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Centre government piyush goyal PM Modi ecgc exporters banks