New Delhi, Sept. 15 The Export Credit Guarantee Corporation of India (ECGC) has said its income from insurance premium is likely to up by Rs 100 crore this fiscal with a large number of exporters defaulting on payments.
“We are confident we will cross Rs 850 crore in the current fiscal,” Mr A.V. Muralidharan, Chairman and Managing Director, ECGC, told reporters on the sidelines of meet organised by the Federation of Indian Export Organisations (FIEO).
ECGC provides a range of credit risk insurance covers to exporters against loss in export of goods and services.
It also gives guarantees to banks and financial institutions to enable exporters to obtain better facilities from them.
Its income from premium stood at Rs 745 crore. The corporation had sold about 14,500 policies in 2008-09 and is expecting a 5 per cent increase in sales this fiscal.
Mr Muralidharan said the US buyers accounted for the bulk of total default claims. “About 25 per cent of the overall claims are from the US.”
The meet was attended by around 100 exporters from Delhi and NCR.
Mr Ajay Sahai, Director-General of FIEO, asked the exporters to come forward and make use of the credit cover wisely and protect their proceeds.
Source : Business Line