Cabinet approves listing of ECGC, infuse Rs 4,400 cr capital in five years
Cabinet approves listing of ECGC, infuse Rs 4,400 cr capital in five years

The Union Cabinet on Wednesday approved Rs 4,400-crore capital infusion in the state-owned credit insurance provider ECGC Limited and its listing through an initial public offering. The government also approved the continuation of the National Export Insurance Account (NEIA) scheme and infusion of Rs 1,650 crore Grant-in-Aid over five years.

Sharing details of the decisions taken at the Cabinet Committee on Economic Affairs (CCEA), Commerce Minister Piyush Goyal said the government has undertaken a series of measures to provide a boost to the exports sector. In line with this, he said the government has 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.

The minister also informed that the country's exports till September 21, 2021, this fiscal were at USD 185 billion and may touch USD 190 billion by the end of the first of the financial year. 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. Goyal said Rs 500 crore will be infused in the ECGC immediately and another Rs 500 crore in the next financial year. The rest would be need-based. He also said the government will start the process to list the state-owned entity soon, and the IPO would hit the market during the next financial year. Replying to a query regarding the capital infusion in ECGC.

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