Cabinet approves financial support to National Export Insurance Account
Updated: Sep 11, 2014 11:54:32am
“This is against the present leverage of 10 times and allocation of USD 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,” said a official release.
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,” the release added.
NEIA was set up in 2006 as a Public Trust by the Ministry of Commerce and Industry to promote project exports from India. NEIA also supports projects exports which have long credit period for repayment and which are beyond the underwriting capacity of the Export Credit Guarantee Corporation (ECGC). (KNN/SD)