ECGC Ltd: Empowering Exports
ECGC, a premier Export Credit Agency (ECA) of Government of India (GOI) established in 1957, provides credit insurance covers to exporters against 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 endeavors to support Indian Export Industry with its experience, expertise and underlying commitment to progress and advance of India’s exports. ECGC promotes both Short Term (ST) exports (i.e. export realization within one year) and Medium and Long Term (MLT) exports (i.e. export realization extending over a period of more than one year).
The total exports supported by ECGC during the FY 2018-19 is around Rs.6,60,000 crores. It is notable to mention that from the large number of exporters benefited by ECGC’s covers; more than 92% are MSME exporters.
The major coverage has been to USA, UK, GERMANY and UAE. Major sectors covered were employment intensive sectors like Engineering Goods, Textiles and Allied products, Chemical and Pharma and Agro Products.
Further, ECGC provides cover on 239 countries including high risk markets.
The systemic role of ECGC in the context of Working Capital lending to exporters has never been more pertinent than in the present stress scenario in the banking industry. Under ST Export Credit Insurance for Banks (ECIB) lending risk in extending pre and post shipment advances are covered. The total claims paid during the year to both banks and exporters Rs.1013 crores.
The company’s contribution in the last decade by way of claim settlements of around Rs.8300 crores has provided the much needed support to exporters and relief to banking system in ensuring adequate lending to exporters. Despite this huge stress, a profit of Rs.314 crore before tax with a dividend of Rs.60 crores to Government of India (GoI) has been concluded during FY 2018-19.
In all, there are 19 products for exporters, 11 Products for banks and 12 products for Medium and Long-term Exporters/Banks. Further, ECGC also provides Customized Covers to make it cost effective and administrative comfort for exporters and banks. It has also introduced Factoring facility to MSME Sector and cover in foreign currency to Special Economic Zone Exporters.
ECGC being one of the oldest ECAs in the world has been playing a crucial role in insuring the export receivables and lending to exports. The exemplary service rendered has been validated by the best ECA award won in 2017 against competition from older and larger ECAs. Further, Company has been awarded by Council for Fair Business Practices under Service Sector for practicing, promoting and committing to fair business practices and also received Best Performance in General Category from Ministry of Micro, Small & Medium Enterprises, Government of India for Exemplary Work under Public Procurement Policy for Promotion of SC/ST Entrepreneurs It has been receiving first or second price in “Indira Gandhi Award” (Now renamed to “Rajbhasha Kirti Puraskar”) from since 20 years and winning first price in “Rajbhasha Puraskar” from Ministry of Commerce” from the last 7 years and received awards at various centers in India through Town Official Language Implementation Committee (TOLIC).
