ECGC pays dividend of Rs. 72.50 Cr.

Commerce and Industry Minister Smt. Nirmala Sitharaman acknowledged on behalf of Government of India a dividend of Rs. 72.50 Cr from ECGC Limited for the year 2016-17. ECGC has a made a profit before tax of Rs. 407 Cr after settling claims to exporter and banks for Rs. 865 Cr. Gross premium income declined by 4% despite the introduction of average discount of 17% to exporters with effect from April 2017. The net worth of the company rose to Rs. 3619 Cr and the investment amount were Rs. 8025 Cr.

ECGC offers 20 products and services 12,000 covers to exporters and offers 11 products to Banks covering 23,600 accounts. The total risk value underwritten by ECGC during the year was Rs. 2,65,000 Cr. which is around 15% of total merchandise exports in 2016-17. It is noteworthy to observe that the customer base of ECGC consists of 85% of MSMEs. ECGC also has a database of around 4,00,000 overseas buyers of which 1,20,000 buyers are active with overall limit of Rs. 1,25,000 Cr.

The Minister observed that ECGC, the Export Credit Agency (ECA) has been ground breaker in the field of export credit insurance in India and in its diamond jubilee year, the role of the institution has become more relevant in the times of heightened volatility and instability with global risks hampering severely the international trade and financial system. ECGC's coverage to Chemicals and Pharmaceuticals exports and Agricultural commodities increased by 15% while the actual exports grew by around 4% to 5%. In support of the diversification of exports destinations by way of Focus schemes, it is observed that ECGC's cover to Africa grew by 15% even though the exports did not reflect a similar trend. Thus, it may be inferred that exporters do shy away from risky markets and with the support of ECGC could expand their business in the very same market.

ECGC has been a pioneer in providing cover to banks who lend to exporters. This ensures that export opportunities are not lost for want of adequate and timely finance. This systemic role of ECGC over 60 years was followed by ECAs in other countries including the West, post financial meltdown in 2007/08. This portfolio was responsible for ECGC bagging the Excellence Award 2017 as BEST ECA (Export Credit Agency) amongst 15 nominations from various countries and finally out of a shortlist consisting of also Euler Hermes, Germany and UKEF, UK. Trade & Forfaiting Review (TFR) mentioned that ECGC also headed the popular vote in the hotly contested category of ECAs in the award initiative which has been in vogue for last two decades.

As regards, Medium and long Term export sector, ECGC manages the National Export Insurance Account (NEIA) trust of GOI, which provides insurance support to overseas projects and other contracts. In all 76 contracts with a value of Rs. 35000 Cr was being executed in 29 countries under this scheme during last year.

ECGC also contributes in the international stage as a member of management committee of Berne Union, an association of over 70 ECAs from various countries. ECGC represents India in the BRICS ECAs forum and in the G-12 meetings. Discussions in the International Working Group (IWG) forum are also supported by the relevant inputs from ECGC, gained from other international fora on export credit, insurance and guarantee.

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