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Government have decided to enhance the equity base of the Export Credit Guarantee Corporation of India Ltd. (ECGC) from Rs. 500 crore to Rs. 800 crore over the 10th Five Year Plan period. The financial requirement for this purpose will be Rs. 300 crore at the rate of Rs. 100 crore per year for 3 years to be provided as a Plan allocation. This was announced by Shri Kamal Nath, Union Minister of Commerce & industry, here today.
Enhancement of equity base is as per accepted norms followed in other countries and are meant to increase the capacity of ECGC to extend cover to medium term and long term projects in addition to the short term projects and to underwrite project exports, Shri Kamal Nath said.
Export Credit Guarantee Corporation of India Ltd. (ECGC) which was set up in 1957 has made significant contribution to the development of exports from the country, mainly by providing credit insurance to Indian exporters against loss in export of goods and services arising out of commercial and political risks and by catalysing the availability of adequate finance for exporting activity through guarantees provided to the banks.
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