The ECGC Limited is a government enterprise. It is under the ownership of the Ministry of Commerce and Industry, Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters.

1. EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA (ECGC)
PRESENTED BY:
NIKHILESH MODGIL
PRESENTED TO:
MISS. SUMAN NEGI

2. EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA(ECGC)
• It is an Indian enterprise which is administered by the government of India through the ministry of commerce and
industry.
• It was initially registered as Export risk insurance corporation (ERIC) on 30th July 1957 in Mumbai as a private ltd.
Company.
• Later ERIC’s name was changed to Export credit & guarantee corporation ltd in 1964 and to Export credit
guarantee corporation of India in 1983. With effect from august 8th, 2014, it was renamed as ECGC limited.
• The purpose of ECGC is to promote exports by offering credit risk insurance and allied services to the exporters.
• The Headquarter of ECGC is in Mumbai.
• The MD and Chairperson of ECGC is Geetha muralidhar.

3. WHAT IS ECGC?
• It is fundamentally an export promotion organization.
• It seeks to enhance the competitiveness of Indian exports by offering them credit insurance
covers.
• This insurance cover which is provided by ECGC, assists the Indian exporters with better access
to the credit facilities from banks and other financial institutions
• Export credit guarantee corporation of India offers protection against the non-payment by an
importer.
• ECGC is the 5th largest credit insurance company dealing with the exports of any country.

4. WHAT DOES ECGC DO?
• In case of loss of export of goods and services, it provides credit risk insurance covers to exporters
• Export credit insurance covers are offered to banks and financial institutions to enable exporters to
obtain better facilities from them.
• It assists exporters in recovering bad debts.
• It provides information regarding different countries with its own credit ratings
• For Indian companies investing in joint ventures abroad in the form of equity or loan, overseas
investment insurance is provided.
• It offers insurance protection to exporters in the case of any payment risks.
• It provides guidance to activities related to export.
• It provides information regarding creditworthiness of overseas buyers

5. ROLE OF ECGC FOR EXPORTERS
• ECGC Issues a number of policies which covers commercial as well as political risk associated with
export trade.
• Various policies are categorized as under:
EXPORT CREDIT INSURANCE FOR EXPORTERS(ECIE)
Short term(ECIE-ST) Medium and long term(ECIE-MLT)
Turnover based Exposure based

6. EXPORT CREDIT INSURANCE FOR
EXPORTER BY ECGC
• Short term (ECIE-ST) Turnover based policies
a) Shipments comprehensive risks policy (SCR)
b) Small exporters’ policy (SEP)
c) Specific shipment policy(SSP)
d) Services policy(SRC)
e) Export turnover policy(ETP)
f) Exports(specific buyer’s) policy (BWP)
g) Consignment exports policy(CSA)

7. SHIPMENTS COMPREHENSIVE RISKS
POLICY(SCR)
• It is ideally suited to cover risk in respect of goods exported on short term credit, usually up to
24 months.
• It is a standard whole turnover policy which covers all shipments during the period of policy.
• It covers commercial risks, political risks and L/C opening bank risk from the date of shipment
to the extent of 90%.

8. SMALL EXPORTERS’ POLICY (SEP)
• It is a standard policy which is issued to exporters whose anticipated export turnover for the
period does not exceed Rs. 5crores.
• Commercial risk and political risk cover under this policy is as same of shipment comprehensive
risk(SCR) policy for a period of 12 months from the date of shipment.

9. SPECIFIC SHIPMENT POLICY
• In this, an exporter can choose the shipment to be covered and indicate the type of risks cover
required.
• This policy is valid from the date of issue of the policy up to the last date for shipment under the
relevant contract.
• The policy covers commercial risks, political risks and L/C opening bank risk to the extent of
90% of loss sustained.

10. SERVICES POLICY(SRC)
• ECGC has introduced a number of policies for companies providing technical or professional
services to overseas clients.
Specific services contract(comprehensive risks) policy;
Specific services contract(political risks) policy;
Whole turnover services(comprehensive risks) policy;
Whole turnover services (political risks) policy.

11. EXPORT TURNOVER POLICY(ETP)
• Turnover policy has been introduced for the benefits of large exporters who pays up to Rs. 10 lakh p.a
towards premium.
• Premium under policy is calculated on the basis of projected annual export turnover and is paid in four
equal instalments every quarter.
• Adjustment based on actual turnover is made in last instalment of premium.

12. EXPORTS(SPECIFIC BUYER’S) POLICY (BWP)
• It provides covers for shipments made to particular buyer or on l/c opening bank for a set of
buyers.
• Exporters not holding standard policy or whole turnover policy can avail of this policy.
• Period of this policy is 12 months.
• It covers commercial risks, political risks and L/C opening bank risk from the date of shipment to
the extent of 80% of loss sustained.

13. CONSIGNMENT EXPORTS POLICY(CSA)
• Consignment sale is one of the popular method of exports.
• In this method, exporters enter into agency agreement with agents abroad who receive and hold
stocks ready for the sale to overseas buyers as per demand in consideration of a commission.
• This policy covers commercial risks on stockholding agent and/or ultimate buyer and political
risks to the extent of 90% in case of standard policyholders and 80% for others.

14. • Short term (ECIE-ST) Exposure based policies
a) Buyer’s exposure policy(BEP)
b) IT- enabled services policy (ITES)
c) Small and medium enterprise’s policy (SME)
d) Software project policy (SPP)

15. BUYER’S EXPOSURE POLICY(BEP)
• This policy is meant for exporters having a large number of shipments to a particular buyer.
• An exporter can choose to obtain exposure based cover on a selected buyer.
• Such cover is against commercial and political risks.
• The option to exclude L/C shipment is available.

16. IT- ENABLED SERVICES POLICY (ITES)
• This policy issued to cover commercial and political risks involved in rendering IT- enabled
services to overseas buyers.
• Two types of ITES policies:
Single buyer it enabled services policy (SITES)
Multi- customer it- enabled services policy (MITES).

17. SMALL AND MEDIUM ENTERPRISE’S
POLICY(SME)
• ECGC introduced a policy exclusively for small and medium enterprises(SME) in the year 2008.
• This policy provides cover to the SME sector units against commercial risks, political risks and
L/C opening bank risks.
• This policy is only for manufacturer exporters.

18. SOFTWARE PROJECT POLICY(SPP)
• The commercial risks and political risks involved in software project services, either on one time
or turnkey basis, involving :
Development of software offshore or development of software on site of the client or both
offshore and on site development are covered under this policy.

19. • Medium and long term (ECIT-MLT) policies
a) Construction works policy (CWP)
b) Specific policy for supply contract
c) Specific shipment policy (SSP)
d) Specific services policy (SRC)

20. CONSTRUCTION WORKS POLICY(CWP)
• It is designed to provide cover to an Indian contractor who executes a civil construction job
abroad.
• The loss suffered by Indian contractor due to commercial and political reasons is covered to
the extent of 85% under this policy.

21. SPECIFIC POLICY FOR SUPPLY CONTRACT
• Contracts for export of capital goods or turkey projects or construction works or rendering
services abroad are not of a repetitive nature
• They involve medium or long term credits.
• Such transactions are therefore insured by ECGC on a case to case basic under specific contract
policies.

22. SPECIFIC SHIPMENT POLICY
• It can be obtained by exporters that have secured contract for supply of capital goods.
• These capital goods include machinery or equipment's on deferred terms of payment.
• The cover provides protection against non receipt of payments due to commercial and/or political
risks.

23. SPECIFIC SERVICES POLICY (SRC)
• It has been designed to provide protection to a wide range of services like technical or
professional, hiring or leasing.
• Specific services policy are issued to cover either commercial risks or political risks or both for
specific service contracts or for all contracts during a year.

24. ROLE OF ECGC IN PROVIDING FINANCE TO
EXPORTERS
• Packing credit guarantee
• Post shipment export credit guarantee
• Export production finance guarantee
• Export finance guarantee
• Export performance guarantee
• Export finance(overseas lending) guarantee

25. PACKING CREDIT GUARANTEE
• Any loan given by banks to an exporter at the pre shipment stage against a confirmed export
order or letter of credit qualifies for packaging credit guarantee.
• It advances extended for export of services or for construction works abroad are also eligible for
cover under this guarantee.
• The bank will entitled to claim 66.67% of its loss from the corporation in the event of the
exporter failing to discharge his liabilities to the bank.

26. POST SHIPMENT EXPORT CREDIT GUARANTEE
• Bank extend post shipment finance to exporters through purchase, negotiation or discount of
export bills or advances against such bills.
• It provide protection to banks against non realization of export proceeds and the resultant failure
of the exporter to repay the advances availed.
• Percentage of loss covered under this guarantee is 75%.

27. EXPORT PRODUCTION FINANCE GUARANTEE
• It enables banks to sanction advance at the pre- shipment stage the full extent of the domestic
cost of production.
• Bank is entitled to 66.67% of its loss from the corporation.

28. EXPORT FINANCE GUARANTEE
• It covers post shipment advances granted by banks to exporters against export incentives
receivable in the form of duty drawback.
• Percentage of loss covered is 75% of the loss suffered.

29. EXPORT PERFORMANCE GUARANTEE
• Exporters are often called upon to furnish a bank guarantee to foreign parties to ensure due
performance or against advance payment or in lieu of retention money.
• It protects banks to the extent of 75% of the loss suffered.

30. EXPORT FINANCE(OVERSEAS LENDING)
GUARANTEE
• If bank financing an overseas project provides a foreign currency loan to a contractor and they
can protect itself from the risk of non payment by obtaining export finance (overseas guarantee).
• Percentage of loss covered under this is 75%.

31. “YOU FOCUS ON EXPORTS
WE COVER THE RISK”
THANK YOU

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