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For MSME export boost, cabinet approves Rs 4400 cr ECGC investment

Ziraat Times News Network

The Union Cabinet has approved Rs 4,400 crore investment in Export Credit Guarantee Corporation Ltd (ECGC) in five years to provide support to exporters as well as banks. The move is billed to help create 59 lakh new jobs, including 2.6 lakh in formal sector.

“The PM-led cabinet today approved additional capital infusion of Rs 4,400 crore in ECGC. With this, ECGC will be able to provide an insurance policy worth Rs 88,000 crore,” Union minister Piyush Goyal said during a press briefing on cabinet announcements.

Mr Goyal said as of September 21, the country has exported goods worth $185 billion, which is the highest in the history of India in the first six months.

He said when small businesses export, they want it to have insurance cover as well. “If, for some reason, payment does not come on time, ECGC will provide insurance cover.”

The Modi-led Cabinet also approved the listing of Export Credit Guarantee Corporation Ltd through the initial public offer on the stock exchange. He said ECGC is giving profits for the past three years and pays dividend regularly.

The Cabinet also took a decision on NEIA, a trust that provides insurance on project exports. “The government will infuse Rs 1,650 crore in a scheme called National Exporters’ Insurance Account,” the minister said.

As per Goyal, around 97 per cent of the industries are from MSME sectors. “Today’s decision will provide direct benefit to MSMEs as they’ll be able to export on a bigger scale.”

Under the scheme, Rs 500 crore will be disbursed immediately, while Rs 500 crore will be available next year. “Also, we will start the process of its listing it,” he said.

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