Manoj Patodia, Chairman, Cotton Textiles Export Promotion Council (Texprocil) has hailed the new enhanced export credit risk insurance cover saying it will enable small exporters to explore new markets and buyers while diversifying their existing product portfolio. The new policy would also provide small exporters fund-based export credit working capital limit of up to Rs 20 crore.
The scheme was launched by export credit provider Export Credit Guarantee Corporation of India (ECGC) to insure up to 90 per cent of the credit risk in export finance and support small exporters by encouraging banks to provide more credit for export amid global economic uncertainty.
The risk cover will be provided by banks under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB-WTPC & PS). It would provide small object-oriented companies export credit at a lower rate from banks, besides other concessions. According to ECGC, the credit support extended for exports was Rs 6.18-lakh crore last fiscal with over 6,700 exporters benefitting from the direct cover issued while over 9,000 exporters benefited under the Export Credit Insurance for Banks as of March-end this year.