ECGC Limited (Formerly Export Credit Guarantee Corporation of India Limited) is a government owned export credit agency of India. It is under the

ownership Ownership is the state or fact of legal possession and control over property, which may be any asset, tangible or intangible. Ownership can involve multiple rights, collectively referred to as title, which may be separated and held by different ...

of the

Ministry of Commerce and Industry A Ministry of Trade and Industry, Ministry of Commerce, Ministry of Commerce and Industry or variations is a ministry that is concerned with a nation's trade, industry and commerce. Notable examples are: List *Algeria: Ministry of Industry and M ...

Government of India The Government of India ( ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

, and is headquartered in

Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the secon ...

, Maharashtra. It provides export credit

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...

support to Indian exporters and banks. Its topmost official is designated as Chairman and Managing Director, who is a central government

civil servant The civil service is a collective term for a sector of government composed mainly of career civil servants hired on professional merit rather than appointed or elected, whose institutional tenure typically survives transitions of political leaders ...

under ITS cadre. The

had initially set up Export Risks Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.

History

ECGC Ltd., was established in July, 1957 to strengthen the export promotion by covering the risk of exporting on credit. It functions under the administrative control of the Department of Commerce,

. It is managed by an Asset Management Company comprising representatives of the Government,

Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible f ...

, banking, insurance and exporting community. The name of the company has been changed from Export Credit Guarantee Corporation of India Limited to ECGC Limited with effect from 8 August 2014 as per the certificate issued by the Deputy Registrar of Companies,

Registrar of Companies A company register is a register of organizations in the jurisdiction they operate under. A statistical business register has a different purpose than a company register. While a commercial/trade register serves a purpose of protection, account ...

, Mumbai. ECGC Ltd. is the seventh largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is

₹ The Indian rupee sign (₹) is the currency symbol for the Indian rupee (ISO 4217: INR), the official currency of India. Designed by D. Udaya Kumar, it was presented to the public by the Government of India on 15 July 2010, following its select ...

3,190

crores A crore (; abbreviated cr) denotes ten million (10,000,000 or 107 in scientific notation) and is equal to 100 lakh in the Indian numbering system. It is written as 1,00,00,000 with the local 2,2,3 style of digit group separators (one lakh is ...

and authorised capital is ₹5,000 crores.

Functions

*Provides a range of credit risk insurance covers to exporters against loss in export of goods and services as well. *Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them. *Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan and advances.

Facilities provided by ECGC

*Offers insurance protection to exporters against payment risks *Provides guidance in export-related activities *Makes available information on different countries with its own credit ratings *Makes it easy to obtain export finance from banks/financial institutions *Assists exporters in recovering bad debt *Provides information on credit-worthiness of overseas buyers

Need for export credit insurance

Payments for exports are open to risks even at the best of times. The risks have assumed large proportions today due to the far-reaching political and economic changes that are sweeping the world. An outbreak of war or

civil war A civil war or intrastate war is a war between organized groups within the same state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government polic ...

may block or delay payment for goods exported. A coup or an insurrection may also bring about the same result. Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported. In addition, the exporters have to face commercial risks of

insolvency In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet in ...

or protracted the default of buyers. The commercial risks of a foreign buyer going

bankrupt Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debto ...

or losing his capacity to pay are aggravated due to the political and economic uncertainties. Export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseas business without fear of loss. Cooperation agreement with MIGA (Multilateral Investment Guarantee Agency) an arm of

World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...

. MIGA provides: # Political insurance for foreign investment in developing countries. # Technical assistance to improve investment climate. # Dispute mediation service. # It helps the exporter Under this agreement protection is available against political and economic risks such as transfer restriction, expropriation, war, terrorism and civil disturbances etc...

Notable records

*Largest Policy – short term ₹450 Crore *Largest database on buyers – ₹8 Lakh *Largest credit limit – ₹80 Crore *Largest claim paid – ₹540 Crore *Quickest claim paid – 2 days *Highest compensation – ₹788 Crore to

Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...

ECGC Ltd. now offers various products for the exporters and bankers. If readymade products are not suited to an exporter/banker, then ECGC designs tailormade products for them.

References

External links

Insurance Regulatory and Development Authority

Export Credit Guarantee Corporation of India
Official site
ECGC Network of Branches

Indian Insurance
ECGC India online forum

ECGC Forum on FB

ECGC Group on FB

Unofficial website of ECGC on Facebook {{DEFAULTSORT:Export Credit Guarantee Corporation of India Export credit agencies, India Foreign trade of India Ministry of Commerce and Industry (India) Government-owned insurance companies of India Financial services companies based in Mumbai Financial services companies established in 1957 Indian companies established in 1957 1957 establishments in Bombay State