Export Credit Guarantee Corporation of India Ltd.
The Export Credit Guarantee Corporation of India Ltd. (ECGC) is an export promotion organization under the administrative control of the Ministry of Commerce & Industry, Department of Commerce. It is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community. ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.800 crores and authorized capital Rs.1000 crores
ECGC provides a range of credit risk insurance covers to exporters against loss in export of goods and services; offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them; and provides overseas investment insurance to Indian companies investing in joint ventures abroad in the form of equity or loan. ECGC operates three special schemes, namely, the Exchange Fluctuation Risk Cover, Transfer Guarantee scheme and the Overseas Investment Insurance scheme.
Any Indian investment made by way of equity capital or untied loan for the purpose of setting up or expansion of overseas projects is eligible for cover under investment insurance. The investment may be either in cash or in the form of export of Indian capital goods and services. Cover is available for the original investment together with annual dividends or interest receivable. The risks of war, expropriation and restriction on remittances are covered under the scheme. As the investor would be having a hand in the management of the joint venture, no cover for commercial risks is provided. The period of insurance cover does not normally exceed 15 years in the case of projects involving long construction period. The cover can be extended for a period of 15 years from the date of completion of the project, subject to a maximum of 20 years from the date of commencement of investment. The amount insured is reduced progressively in the last five years of the insurance period.
Export Credit Guarantee Corporation of India Limited
Tel. 5659 0500 / 5659 0510
Export Credit Guarantee Corporation of India Limited, was established in 1957 by the Government of India to strengthen the export promotion drive by covering the risk of exporting on credit.