Rs2,000 crore-national export insurance fund to be set up

Chennai: The central government is actively considering setting up of a national export insurance fund with a corpus of Rs2,000 crore to extend support in respect of exports involving large value projects with credit terms which are unconventional and those beyond the underwriting capacity of the Export Credit Guarantee Corporation of India Limited (ECGC).

The fund would also enable exports to countries facing persistent economic and financial difficulties.

Meanwhile the government has provided Rs100 crore to ECGC as additional equity during 2004-05. For the current fiscal an additional equity infusion of Rs200 crore is being budgeted.

Last fiscal the export credit insurer has settled 978 claims worth Rs352.28 crore.

Meanwhile, six new policies with simplified procedures and reduced premium rates have been introduced by ECGC to meet specific needs of exporters, and 9 countries were upgraded resulting in lower cost for exporters.