The Union Cabinet on Wednesday approved capital infusion of Rs 4,400 crore in State-owned Export Credit Guarantee Corporation of India (ECGC) and its listing through an initial public offer (IPO). 

The government would inject Rs 4,400 crore in ECGC over a period of five years beginning 2021-22, Commerce Minister Piyush Goyal told reporters after the Cabinet meeting. He also added Rs 500 crore would be infused immediately. The listing of ECGC is likely to happen next year. 

The minister also informed that exports had totalled to Rs 18,500 crore till September 21, 2021, in the current financial year. 

The Cabinet also approved continuation of the National Export Insurance Account (NEIA) scheme and infusion of Rs 1,650 crore of grant-in-aid over five years. Capital infusion in NEIA will help tap huge potential of project exports in focus markets. 

ECGC was established to promote exports by providing credit insurance services to exporters against non-payment risks by the overseas buyers due to commercial and political reasons. It also provides insurance covers to banks against risks in export credit lending to the exporter borrowers. 

Capital infusion in ECGC will enable it to expand its coverage to export-oriented industry, particularly labour-intensive sectors. 

ECGC is a market leader with around 85 per cent of share in the Indian export credit insurance market.