ECGC(Export Credit Guarantee Corporation)

The presentation deals with the Export Credit Guarantee Corporation of India, Includes..
1.Introduction
2.Evolution
3. Roles
4. Functions
5. Present scenario
6. Last 3 years Financial Performance
7. Major Services Offered
8. Strength, Weakness, Opportunities, Threat(SWOT) Analysis
9. Conclusion

1. Sidharth P.S . B.Com., LL.B. (Hons) School Of Legal Studies, CUSAT

2. Introduction Export Credit Guarantee Corporation of India Limited. Established in the year 1957 by the Government of India. The Export Credit Guarantee Corporation of India Limited is a company wholly owned by the Government of India based in Mumbai, Maharashtra It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce

3. Evolution of ECGC The need for export promotion had started immediately after Independence in 1947. Shri T T Krishnamachari , Finance Minister in Pandit Nehru’s cabinet appointed a special committee under the Chairmanship of Shri T.C.Kapur to examine the feasibility of setting up an effective organization to provide insurance against export credit risks. As per the recommendations of Kapur Committee and thus the Export Risk Insurance Corporation (ERIC) was registered on 30th July 1957 in Mumbai as a Pvt. Ltd. Company, entirely state owned, under the Companies Act

4. Shri Morarji Desai, Union Commerce Minister inaugurated ERIC and the first Policy was issued on 14th October 1957. Shri Ratilal M Gandhi was the First Chairman and Shri T C Kapur was the First Managing Director of the Corporation. After introduction of insurance covers to banks during the period 1962-64, ERIC’s name was changed to Export Credit & Guarantee Corporation Ltd in 1964. To bring Indian identify in the name, ECGC was renamed as Export Credit Guarantee Corporation of India Ltd in the year 1983.

5. Role Provides a range of credit risk insurance covers to exporters against loss in export of goods and services Offers guarantees to banks and financial institutions to enable exporters obtain better facilities from them Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan. Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported

6. Functions To encourage and facilitate globalization of India’s trade. Provides a range of credit risk insurance covers to exporters against loss in export of goods and services. Offers guarantees to banks and financial institutions to enable exporters to better facilities from them. obtain Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan

7. Present Scenario ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs.1000 crores and authorized capital Rs.5000 crores . First overseas office of ECGC in London on September 17, 2013. ECGC has achieved a magical milestone of Rs.1000 Crores of premium income An ISO organization excelling in credit insurance services which has 5 regional offices and 51 branches

8. Last 3 Years Financial Performance Years 2013-14 2012-2013 2011-2012 Value of Business covered 279 269 246 Premium Income 1303 1157 1004 Claims Paid 897 548 713 Recoveries Made 158 120 168 Amount in CRORES

9. Major Services Offered Credit Insurance Policies Export Credit Insurance Cover to Banks Special Schemes

10. Credit Insurance Policies Shipments (Comprehensive Risks) Policy Small Exporters Policy Export Turnover Policy Specific Shipment Policy - Short Term(SSP-ST) Export (Specific Buyers) Policy Buyer Exposure Policies Consignment Exports Policy (Stockholding Agent and Global Entity) Service Policy Software Project Policy IT-enabled Services (Specific Customer) Policy Construction Works Policy Specific Policy for Supply Contract Insurance Cover for Buyer's Credit And Line of Credit

11. Export Credit Insurance Cover to Banks Export Credit Insurance Packing Credit Export Credit Insurance-Export Production Finance (ECIB-EPF) Export Credit Insurance-Post -Shipment (ECIB -INPS) Export Credit Insurance-Export Finance (ECIB-EF) Export Credit Insurance-Export Performance (ECIB-EP) Export Finance (Overseas Lending) Guarantee

12. Special Schemes Transfer Guarantee Overseas Investment Guarantee Exchange Fluctuation Risk Cover

13. S W O T Analysis Strengths Expertise Staff A near Monopoly position Location Vast information database Wide Coverage Weaknesses Infrastructure Requirements Low customer service orientation Lack of Training Lack of Advertisement

14. Opportunities Building of Brand image through advertisement Active participation in export activities Performance recognition Threats Substitute products New entrants

15. Conclusion The ECGC helps by providing insurance cover in respect of risks in export trade. These risk may include loss of money on account of foreign buyer becoming bankrupt or sudden import or exchange restrictions resulting in stopping of payments etc..