The Union Cabinet has approved 4,400 crore rupees investment in ECGC Ltd. (formerly known as Export Credit Guarantee Corporation of India Ltd.) in five years to provide support to exporters as well as banks.
Briefing Media, Commerce and Industry and Food and Public Distribution Minister Piyush Goyal said, Capital Infusion and planned IPO to increase ECGC’s underwriting capacity up to 88,000 crore and propel additional exports of 5.28 lakh crore over a five-year period.
It will help create 59 lakh new jobs including 2.6 lakh in formal sector. This decision is part of a series export related schemes and initiatives taken by the Government over the last few years.
Extension of Foreign Trade Policy (2015-20) up to 31st March next year has been approved. The cabinet has also decided to release 56,027 crore rupees in September 2021 to liquidate all pending arrears.
These measures will provide a boost to the exports sector. In line with this, the cabinet has today approved capital infusion of 4,400 crore to over a period of five years, i.e. from financial year 2021-2022 to financial year 2025- 2026.
Cabinet has also approved listing of Export Credit Guarantee Corporation Ltd. through the Initial Public Offer on the stock Exchange. The Company intends to increase its maximum liabilities to 2.03 lakh crore rupees from 1.00 lakh crore rupees by 2025-26.