Govt to Allocate Rs 2,000 Crore for Export Credit Guarantee Scheme
It is also leant that a management committee will be formed under the chairmanship of the secretary, department of financial services (DFS), to oversee the progress and implementation of the scheme.
New Delhi: Day after the Union Cabinet’s announcement to fund domestic exporters, the government is expected to soon allocate a part of about Rs 2,000 crore for the credit guarantee scheme. The funds could be provided through supplementary demands for grants after the Parliament approves grants, according to the sources.
It is also leant that a management committee will be formed under the chairmanship of the secretary, department of financial services (DFS), to oversee the progress and implementation of the scheme. “The scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets,” the sources said.
On Wednesday, the Union Cabinet cleared the introduction of the credit guarantee scheme for exporters (CGSE) to provide 100 per cent credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to member lending institutions (MLIs) for extending additional credit facilities up to Rs 20,000 crore to eligible exporters, including MSMEs.
“The NCGTC would hence require Rs 2,000 crore to extend credit facilities of up to Rs 20,000 crore to eligible exporters,” sources said, adding that some money is already with the company.
By enabling collateral-free credit access under CGSE, it will strengthen liquidity, ensure smooth business operations, and reinforce India's progress towards achieving the $1 trillion export target as well as the country's journey towards Aatmanirbhar Bharat.
