Lok Sabha Question No. 1814 (UNSTARRED), answered on 2020-09-21
Subject: ECGC Limited
Ministry: COMMERCE AND INDUSTRY
Asked by: Vinod Kumar Sonkar, Bhola Singh, Sangeeta Kumari Singh Deo, Jayanta Kumar Roy, Raja Amareshwara Naik, Sukanta Majumdar

- (a) Yes.
- (b) ECGC Limited was set up in 1957 in Mumbai under the Companies Act 1956 to provide export credit insurance services to exporters and banks to promote and support exports from India.
- (c) ECGC services/products include export credit insurance policies for exporters, export credit insurance for banks and medium & long term project exports, factoring scheme for MSMEs and Micro & Small Exporter Policies. Additionally, ECGC is the managing agency of the National Export Insurance Account (NEIA) Trust that enables Government of India to support Project

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1814 TO BE ANSWERED ON 21 st   SEPTEMBER, 2020

## ECGC LIMITED

## 1814.  SHRI VINOD KUMAR SONKAR:

SHRI BHOLA SINGH:

SHRIMATI SANGEETA KUMARI SINGH DEO:

DR. JAYANTA KUMAR ROY:

SHRI RAJA AMARESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) whether the Government has set up the Export Credit Guarantee Corporation of India (ECGC) Limited  to  provide  export  credit  insurance  services  to  exporters  and  banks  to  promote  and support exports from India;
- (b) if so, the details thereof;
- (c) the details of products, services and funds spent/ provided by the ECGC;
- (d) the details of performance including premium and claims by the ECGC during the last 2 years;
- (e) whether  the  Government  has  reviewed  the  functioning  of  the  ECGC  and  if  so,  the  details thereof; and
- (f) the other steps being taken by the Government like capital infusion, reforms, etc. to improve the performance of the ECGC?

## ANSWER

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## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

exports in the national interest. The capital infused by the Government of India in the company, against which shares are issued to the Government of India, is utilized to enhance the capital base of the company. The underwriting capacity is derived from the capital base, based on which  ECGC  generates  income  from  business  operations  and  pays  dividend  to  the Government.

- (d) The performance details of ECGC during the last two financial years are given below:

(Amount in ₹ Crore)

| Financial Year          | 2018-19   | 2019-20   |
|-------------------------|-----------|-----------|
| Amount of claims paid   | 1,013.31  | 408.41 *  |
| Premium received amount | 1,247.54  | 1075.41   |

(* as the documentation for the year 2019-20 was not available by 31 st March, 2020, claims paid are lower for the year 2019-20.)

- (e) & (f) The performance of ECGC is monitored through the various indicators of Memorandum of Understanding (MoU), which is signed between ECGC and Department of Commerce. The Government of India has infused equity capital to the tune of ₹1,410 crore in ECGC over a period of three years from FY 2017-18 to FY 2019-20 to support a higher volume of export credit insurance, including for exports to emerging and challenging markets.

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