New Delhi: Union Minister of Commerce and Industry Piyush Goyal on Wednesday said that the Union Cabinet has approved the listing of state-owned Export Credit Guarantee Corporation (ECGC) Ltd through the initial public offer (IPO) on the stock exchanges.
The minister made this announcement during the Cabinet briefing here. While addressing the press conference, Goyal said, "The Union Cabinet has approved the listing of Export Credit Guarantee Corporation Ltd. through the IPO on the stock exchange.
"The cabinet also approved Rs 4,400 crore investment in ECGC Ltd in 5 years to provide support to exporters as well as banks," the Union minister added further.
The minister stated that the approved amount will be infused in instalments, thereby, increasing the capacity to underwrite risks up to Rs 88,000 crores and this will enable ECGC to issue covers that can support additional exports of Rs 5.28 lakh crore over the five-year period in line with the existing pattern.
Goyal also said that this move will help in creating 59 lakh new jobs including 2.6 lakh in the formal sector and ECGC could be listed on the stock exchanges by the next fiscal year.
ECGC was established by the Government of India under the Companies Act in 1957 to promote exports by providing credit insurance services to exporters against non-payment risks by the overseas buyers due to commercial and political reasons.
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