New Delhi, June 28 (KNN) In a bid to enhance insurance coverage to micro, small and medium enterprises (MSMEs) exports, the Cabinet Committee on Economic Affairs has approved capital infusion of Rs 2000 crore to Export Credit Guarantee Corporation (ECGC).

It has also approved contribution of grant-in-aid (corpus) of Rs 1,040 crore to National Export Insurance Account Trust (NEIA) to promote project exports.

Addressing a press conference after the cabinet meeting chaired by Prime Minister Narendra Modi, Union Minister Piyush Goyal said, “The funds to ECGC would be infused in 3 financial years- Rs 50 crore in 2017-18, Rs 1,450 crore in 2018-19 and Rs 500 crore for 2019-20.”

The monetary infusion would enhance insurance coverage to MSME exports and strengthen India's exports to emerging and challenging markets like Africa, CIS (Commonwealth of Independent States) and Latin American countries.

Not only this, it will help ECGC to diversify its product portfolio and provide cost effective credit insurance helping exporters to gain a stronger foothold in the difficult markets.

With a stronger underwriting capacity, ECGC will be in a better position to support Indian exporters to tap new and unexplored markets.

Further, covers from the corporation will help in improving competitive position of India exporters in international markets.

More than 85 per cent of customers benefitted by ECGC's covers are MSMEs.

ECGC covers exports to around 200 countries in the world. It offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and/or commercial risks.