+
Govt nods Rs 4,400 cr capital infusion in ECGC for five years
ECONOMY & POLICY

Govt nods Rs 4,400 cr capital infusion in ECGC for five years

The centre has approved a Rs 4,400 crore capital infusion into credit insurance provider ECGC Limited over five years starting from FY22.

It also approved the company listing on the domestic bourses, which is expected to happen in the next financial year.

In the current financial year, Rs 500 crore will be added out of the total amount. In FY23, another Rs 500 crore will be infused, commerce and industry minister Piyush Goyal told the media. The remaining amount will be infused as and when required.

Listing on domestic bourses will result in more transparency and accountability and allow the company to mobilise fresh capital from the market, either through the same initial public offering (IPO) or subsequently by a follow-on public offer (FPO).

This will also end in increasing its maximum liabilities to Rs 2.03 trillion from Rs 1 trillion by FY25-26.

The approved infusion along with efforts made to suitably synchronise with the listing process of state-owned credit insurance provider ECGC by the IPO would improve the underwriting capacity of ECGC to help more exports.

ECGC was established more than five decades ago to promote exports by giving credit insurance services to exporters against non-payment risks by overseas buyers due to commercial and political reasons. ECGC is the top player in the export credit insurance market in India currently.

The announcement arrives when India is looking at reaching the target of a $400 billion export this year, which will also help economic recovery.

Goyal said that India has exported goods worth $185 as of 21 September and is likely to reach the $195 mark during the first six months of the current financial year.

While the government is confident of reaching the $400 billion target, owing to difficulties, it may be hard to exceed the mark, he said.

The sanctioned amount will be infused in installments, thereby improving the underwrite risk capacity up to Rs 88,000 crore, and this will allow ECGC to issue covers that can help further exports of Rs 5.28 lakh crore over the five years in line with the current pattern, as per a statement.

The government also sanctioned the National Export Insurance Account (NEIA) scheme continuation and infusion of Rs 1,650 crore grant-in-aid over five years, from FY22 to FY26.

Image Source


Also read: India needs major banks to meet economic shift: Finance Minister
Also read: FDI to help India become $5 trillion economy: Deloitte CEO

The centre has approved a Rs 4,400 crore capital infusion into credit insurance provider ECGC Limited over five years starting from FY22. It also approved the company listing on the domestic bourses, which is expected to happen in the next financial year. In the current financial year, Rs 500 crore will be added out of the total amount. In FY23, another Rs 500 crore will be infused, commerce and industry minister Piyush Goyal told the media. The remaining amount will be infused as and when required. Listing on domestic bourses will result in more transparency and accountability and allow the company to mobilise fresh capital from the market, either through the same initial public offering (IPO) or subsequently by a follow-on public offer (FPO). This will also end in increasing its maximum liabilities to Rs 2.03 trillion from Rs 1 trillion by FY25-26. The approved infusion along with efforts made to suitably synchronise with the listing process of state-owned credit insurance provider ECGC by the IPO would improve the underwriting capacity of ECGC to help more exports. ECGC was established more than five decades ago to promote exports by giving credit insurance services to exporters against non-payment risks by overseas buyers due to commercial and political reasons. ECGC is the top player in the export credit insurance market in India currently. The announcement arrives when India is looking at reaching the target of a $400 billion export this year, which will also help economic recovery. Goyal said that India has exported goods worth $185 as of 21 September and is likely to reach the $195 mark during the first six months of the current financial year. While the government is confident of reaching the $400 billion target, owing to difficulties, it may be hard to exceed the mark, he said. The sanctioned amount will be infused in installments, thereby improving the underwrite risk capacity up to Rs 88,000 crore, and this will allow ECGC to issue covers that can help further exports of Rs 5.28 lakh crore over the five years in line with the current pattern, as per a statement. The government also sanctioned the National Export Insurance Account (NEIA) scheme continuation and infusion of Rs 1,650 crore grant-in-aid over five years, from FY22 to FY26. Image SourceAlso read: India needs major banks to meet economic shift: Finance Minister Also read: FDI to help India become $5 trillion economy: Deloitte CEO

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?