Union Minister Piyush Goyal on Wednesday approved the listing of Export Credit Guarantee Corporation of India through an Initial Public offer on the stock exchange.
Addressing a press conference, Goyal said, "Government under the leadership of Prime Minister Narendra Modi has undertaken a series of measures to provide a boost to the exports sector. In line with this, the Government has today approved capital infusion of Rs 4,400 crore to ECGC Ltd. (formerly known as Export Credit Guarantee Corporation of India Ltd.) over a period of five years, that is, from FY 2021-2022 to FY 2025- 2026. 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."
Cabinet Committee on Economic Affairs (CCEA), in its release, said that 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 the 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. ECGC endeavours to support the Indian export industry with its experience, expertise and underlying commitment to progress and advance of India's exports," it read.
ECGC plays a wider role in supporting exports from labour-intensive sectors and encourage bank lending to enterprises of small exporters thereby leading to their revival. Capital infusion in ECGC will enable it to expand its coverage to export oriented industry particularly labour-intensive sectors. The approved amount will be infused in instalments thereby increasing the capacity to underwrite risks up to Rs 88,000 crore and this will enable ECGC to issue covers that can support additional exports of Rs 5.28 lakh crore over the five-year period in line with the existing pattern.
In addition, in terms of the report 'Export to Jobs' published by the World Bank and International Labour Organisation in February 2019, Rs 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.
"Local Goes Global! Government under PM @NarendraModi ji approves infusion of Rs 4,400 crore in Export Credit Guarantee Corporation of India over 5 years Additional exports of Rs 5.28 lakh crore 59 lakh new jobs," tweeted Piyush Goyal.
On issues concerning on exports to/from China, Goyal also said, "There are rumours doing rounds that the duty has been reduced on the import of apples from China. No such decision has been taken. It is totally baseless. It seems some people have the only business of spreading rumours."
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor