Cabinet approves enhanced financial support to NEIA Trust for overseas project exports

Risk underwriting capacity raised upto 20 times of the actual corpus

The Union Cabinet gave its approval for financial support to the National Export Insurance Account (NEIA) for overseas project exports by increasing the authorized corpus of the NEIA Trust to Rs 4000 crore with risk underwriting capacity upto 20 times of the actual corpus.

This is against the present leverage of 10 times and allocation of US$ 5 billion for Foreign Currency (FC) funds to Exim Bank out of Forex reserves, for on-lending by way of buyer's credit with NEIA cover.

The proposal will increase the capacity of the NEIA Trust to underwrite more large size projects in difficult countries with reasonably significant Indian content. The project exports would give sustained export earning income of greater lifecycle durability and help in creation of jobs for foreign exchange earnings.

Budgetary support to NEIA has been Rs 956 crore. This will be augmented through further budget support.

Powered by Capital Market - Live News