New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved capital infusion of Rs 2,000 crore in public sector company Export Credit Guarantee Corporation (ECGC), an official statement said.
ECGC provides export credit insurance services to facilitate exports from the country and protect exporters from losses due to non-payment of dues by overseas buyers.
"The amount would be infused in the three financial years -- Rs 50 crore in 2017-18, Rs 1,450 crore in the year 2018-19 and Rs 500 crore for 2019-20," the statement said.
The infusion would enhance insurance coverage to micro, small and medium enterprises (MSME) exports and strengthen India's exports to emerging and challenging markets like Africa and Latin American countries, it said, adding that: "More than 85 per cent of customers benefitted by ECGC's covers are MSMEs".
The Commerce Ministry said that with enhanced capital, ECGC's underwriting capacity and risk to capital ratio would improve considerably and it would be in a better position to support Indian exporters tap new and unexplored markets.