ECGC Schemes for Exporters

I want to know the schemes offered by Export Credit Guarantee Corporation of India Ltd ECGC for Exporters?

[Shaleen]

Export Credit Guarantee Corporation of India Ltd ECGC is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It was established on 30 July 1957.

ECGC Schemes

In order to provide export credit insurance support to Indian exporters, the Government of India set up the ‘Export Credit Guarantee Corporation of India Limited (ECGC).

ECGC Whole Turnover Post-shipment Guarantee Scheme

The Scheme provides protection to banks against non-payment of post-shipment credit by exporters.

Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy.

As the post-shipment guarantee is mainly intended to benefit the banks, the cost of premium in respect of the Whole Turnover Post-shipment Guarantee taken out by banks may be absorbed by the banks and not passed on to the exporters.

Where the risks are covered by the ECGC, banks should not slacken their efforts towards realization of their dues against long outstanding export bills.

ECGC's Schemes for Project Exports-

Export of capital goods on deferred payment terms and execution of turnkey Projects, construction works contracts as also rendering of services abroad are collectively referred to as Project exports.

As these transaction are not of repetitive nature and they involve medium / long terms credit, ECGC's insurance cover for such transactions are provided on a case to case basis under Specific Policies.

Normally these contracts are of very high value and involve longer credit period.

In order to protect such exporters ECGC has the following types of covers.

For covering supply contracts and Turnkey Projects Specific Contract / Shipments Policy can be taken.

This Policy can be for covering only political risks or for covering comprehensive risks i.e. both commercial and political risks.