Export credit insurer ECGC to expand overseas

Export credit insurer, Export Credit Guarantee Corporation of India (ECGC), is looking at expanding its operations in overseas markets and has identified four destinations to open its offices, a top company official said.        

"We are contemplating setting up of our offices in London, Dubai, Singapore or Hong Kong and Africa," ECGC Chairman and Managing Director, A V Muralidharan, said in the financial capital.

The Corporation has already applied to the Government for permission to open the offices and is awaiting its approval, he added.        

ECGC is an export promotion organisation and functions under the Ministry of Commerce and Industry, Department of Commerce.        

It provides a range of credit risk insurance covers to exporters against loss in export of goods and services.        

The Corporation which collected a premium of Rs 745 crore in the last financial year is targeting to close this fiscal with an additional Rs 105 crore premium, Muralidharan said.        

"We are aiming to collect a premium of Rs 850 crore by end-this fiscal as against Rs 745 crore collected during the previous fiscal," he added.

ECGC in the first six months has seen a growth of 12.5 per cent in its premium collection at Rs 390 crore, he said.        

The Corporation in FY 09 settled claims amounting to Rs 450 crore, Muralidharan said.        

The insurer also offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.        

Currently, the textile sector contributes 20 per cent to the Corporation's total premium collection, he said, adding that sectors like engineering goods and pharmaceuticals are also faring well.

Muralidharan further said that there are signs of revival in sectors such as auto, consumer goods and construction.