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Government sets up panel to study capital issues of Exim Bank, ECGC

The panel, which will submit its report to the government in six weeks, will also examine the issue of capital support for Export Credit Guarantee Corporation of India (ECGC).

By: | New Delhi | Published: September 20, 2016 6:32 PM
Commerce and Industry Minister Nirmala Sitharaman. (Source: PTI) Commerce and Industry Minister Nirmala Sitharaman. (Source: PTI)

In a bid to promote export finance, the government recently constituted a panel headed by the finance secretary to look into various issues, including higher capital infusion in Exim Bank.

The panel, which will submit its report to the government in six weeks, will also examine the issue of capital support for Export Credit Guarantee Corporation of India (ECGC).

The 10-member panel approved by Commerce and Industry Minister Nirmala Sitharaman also includes economic affairs secretary, commerce secretary, financial services secretary and disinvestment secretary, sources said.

As per the terms of reference, the panel will examine the need for capital infusion by the government in Exim Bank (Export Import Bank of India) and ECGC.

The committee will also look into aspects relating to quantum of dividend to be paid by Exim Bank and ECGC.

The panel has been entrusted with the job of examining issues related to widening the role of ECGC by addressing regulatory constraints and also suggesting separate prudential norms and policy guidelines for Exim Bank to be framed by RBI under the master directions.

Exim Bank was formed with a mandate to not just boost exports from India, but integrate the country’s foreign trade and investment with the overall economic growth.

It has been both a catalyst and a key player in the promotion of cross-border trade and investment.

ECGC, wholly-owned by the central government, was set up with the objective of promoting exports by providing credit risk insurance and related services.

Over the years, it has designed different export credit risk insurance products to suit requirements of Indian exporters and commercial banks extending export credit.

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