Export Credit Guarantee Corporation of India

ECGC Limited

Company type	Government of India Enterprise
Industry	Insurance
Founded	30 July 1957
Headquarters	Mumbai, Maharashtra, India
Key people	M. Senthilnathan, ITS (Chairman & MD)
Products	Export Credit Insurance
Owner	Ministry of Commerce and Industry, Government of India
Website	ecgc.in

ECGC Limited (Formerly Export Credit Guarantee Corporation of India Limited) is a government owned export credit agency of India. It is under the ownership of the Ministry of Commerce and Industry, Government of India, and is headquartered in Mumbai, Maharashtra.^[1] It provides export credit insurance support to Indian exporters and banks. Its topmost official is designated as Chairman and Managing Director, who is a central government civil servant under Indian Trade Service (ITS) cadre.

The Government of India 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.^[2] It functions under the administrative control of the Department of Commerce, Ministry of Commerce and Industry, Government of India. It is managed by an Asset Management Company comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community.^[3]

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, 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 ₹3,190 crores and authorised capital is ₹5,000 crores.^[4]

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 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 or protracted the default of buyers. The commercial risks of a foreign buyer going bankrupt 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. MIGA provides:

1. Political insurance for foreign investment in developing countries.
2. Technical assistance to improve investment climate.
3. Dispute mediation service.
4. 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 ^{[citation needed]}

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
• [1] ECGC Forum on FB
• [2] ECGC Group on FB
• [3] Unofficial website of ECGC on Facebook

• v
• t
• e

Ministry of Commerce and Industry (India)

Department
of
Commerce

Divisions	Administrative & General Division Finance Division Economic Division Trade Policy Division Foreign Trade Territorial Division Plantation Division Supply Division State Trading & Infrastructure Division
Attached & Subordinate Offices	Directorate General of Foreign Trade Directorate General of Supplies & Disposals (DGS&D) Directorate General of Anti-Dumping & Allied Duties (DGAD) Directorate General of Commercial Intelligence & Statistics, Kolkata Special Economic Zones Pay & Account Office (Supply, Commerce & Textiles)
Autonomous Bodies	Commodity Boards Agricultural and Processed Food Products Export Development Authority Export Inspection Council Indian Institute of Foreign Trade Indian Institute of Packaging Marine Products Export Development Authority National Centre for Sustainable Aquaculture (NaCSA) Rajiv Gandhi Centre for Aquaculture (RGCA) Network for Fish Quality Management & Sustainable Fishing (NETFISH)
PSUs	State Trading Corporation (STC) PEC Limited MMTC Ltd Export Credit Guarantee Corporation of India India Trade Promotion Organisation Pay & Account Office (Supply, Commerce & Textiles)
Advisory Bodies	Board of Trade (BOT) Inter State Trade Council Council for Trade Development & Promotion
Export Promotion Councils	Engineering Exports Promotion Council Project Export Promotion Council of India (PEPC) Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) Chemicals & Allied Products Export Promotion Council (CAPEXIL) Council for Leather Exports Sports Goods Export Promotion Council Gem and Jewellery Export Promotion Council Shellac Export Promotion Council Cashew Export Promotion Council of India Pharmaceutical Export Promotion Council The Plastics Export Promotion Council Indian Oil Seeds & Produce Export Promotion Council (IOPEPC) Services Export Promotion Council
Other Organisations	Federation of Indian Export Organisations Indian Diamond Institute Footwear Design & Development Institute (FDDI) National Centre for Trade Information India Brand Equity Foundation Price Stabilization Fund Trust

DPIIT

Statutory Bodies	Intellectual Property Appellate Board Petroleum and Explosives Safety Organisation Copyright Office Semiconductor Integrated Circuits Layout-Design Registry
Autonomous Institutions	National Council for Cement & Building Materials (NCCBM) Indian Rubber Manufacturers Research Association (IRMRA) National Institute of Design National Productivity Council (NPC) Quality Council of India Central Manufacturing Technology Institute (CMTI) Central Pulp & Paper Research Institute (CPPRI)
Attached & Subordinate offices	Grievance Offices Controller General of Patents, Designs & Trade Marks Office of Chief Controller of Accounts (Disclosure of Central Government Accounting Data) Rajiv Gandhi National Institute of Intellectual Property Management (NIIPM) Principal Account Office Office of Technical Adviser (Boilers) Tariff Commission Office of the Salt Commissioner Office of the Economic Adviser National Manufacturing Competitiveness Council Office of Chief Controller of Accounts

Secretaries

• Guruprasad Mohapatra(incumbent)

Ministers

Industry

Syama Prasad Mukherjee Harekrushna Mahtab Nityanand Kanungo Ram Subhag Singh H. C. Dasappa Tribhuvan Narain Singh Damodaram Sanjivayya F. A. Ahmed(Industrial Development) Dinesh Singh (Industrial Development & Internal Trade) Moinul Hoque Choudhury(Industrial Development) C Subramaniam(Industrial Development) T. A. Pai(Industry) Brij Lal Verma George Fernandes Kasu Brahmananda Reddy T. A. Pai N. D. Tiwari Kotla Vijay Bhaskar Reddy Veerendra Patil N. D. Tiwari J. Vengala Rao K. Karunakaran Suresh Prabhu Murasoli Maran Sikandar Bakht

Commerce

I. I. Chundrigar Cooverji Hormusji Bhabha (Commerce) Kshitish Chandra Neogy (Commerce) Jawaharlal Nehru(Commerce & Industry) Sri Prakasa (Commerce) Harekrushna Mahtab (Commerce & Industry) T T Krishnamachari (Commerce & Industry) Swaran Singh Morarji Desai (Commerce & Industry) Lal Bahadur Shastri(Commerce & Industry) KC Reddy (Commerce & Industry) Manubhai Shah (As MoS till 24 January 1966)(Commerce)' Dinesh Singh(Commerce) Bali Ram Bhagat(Foreign Trade & Supply) Dinesh Singh(Commerce) Lalit Narayan Mishra(MoS) D. P. Chattopadhyay(Commerce)(as MoS till 23 December 1976)' Morarji Desai(Commerce) Mohan Dharia(Commerce) Charan Singh(Commerce) Hitendra Desai(Commerce) Indira Gandhi Pranab Mukherjee(Commerce) Pranab Mukherjee(Commerce) Rajiv Gandhi Arjun Singh P Shiv Shankar (Commerce) N. D. Tiwari (Commerce) Dinesh Singh(Commerce & Industry) Chandra Shekhar (Commerce) Subramanian Swamy (Commerce) P Chidambaram(MoS, IC) (Commerce) P. V. Narasimha Rao P Chidambaram (MoS, IC) (Commerce) P. V. Narasimha Rao Atal Bihari Vajpayee Atal Bihari Vajpayee Devendra Prasad Yadav(Commerce) Bolla Bulli Ramaiah(Commerce) Ramakrishna Hegde(Commerce) Murasoli Maran(Commerce & Industry) Anand Sharma(Commerce & Industry) Nirmala Sitharaman(Commerce & Industry)'(MoS, IC)' Suresh Prabhu(Commerce & Industry) Piyush Goyal(Commerce and Industry)(incumbent)

MOS

• Hardeep Singh Puri(incumbent)