The ECGC Limited is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian. Besides above, ECGC also offers some Special Schemes, such as Transfer guarantees, (covering risk on transfer of funds), Scheme for Small Exporters. Special Schemes – ECGC. Suitability. Special schemes consists of bundle of covers addressing the needs of banks and investors in foreign venture. This apart .
|Country:||Republic of Macedonia|
|Published (Last):||5 May 2012|
|PDF File Size:||5.72 Mb|
|ePub File Size:||12.47 Mb|
|Price:||Free* [*Free Regsitration Required]|
This page was last edited on 23 Novemberat The insurance is provided by ECGC with the objective of echc exporters ectc obtain the required guarantee facility from banks on easy terms.
There are cases where even government or central bank guarantees are available safeguarding payments. Specific Contract Comprehensive Risks Policy; and 4.
The period of insurance cover would not normally exceed 15 years. Why labeling sxheme marking in Export business? ECGC provides protection to banks against non-payment of post-shipment credit by exporters.
It covers exchange fluctuation risk of exporters of capital goods, civil engineering contractors and consultants who may have to receive foreign currency payments over a period of years for their exports, construction works or services. While the premium rate for Guarantee issued to cover bond relating to exports on short-term credit is 0.
Payments for exports are open to risks even at the best of times. GST rate on sale of Gums, resins, lacs etc.
ECGC ltd now offers various products for the exporters and bankers. The risks of war, expropriation and restriction on remittances are covered under the schemes.
Recommendations These scheme are targeted at specific audiences such as banks, investors in foreign countries and exporters taking up long term projects abroad, covering distinct risks faced by them. Cover for dividend receivables may not be given in case of risky countries; cover only for original investment.
Special Schemes of ECGC
The political risk policy on the other hand provides protection against political risk policy. An exporter who desires to quote for a foreign tender may have to furnish a bank guarantee for the bid bond. The confirming bank will suffer a loss if the foreign bank fails to reimburse it with the amount paid to the exporter.
This scheme provides protection for Indian Investments abroad. Banks may, in the interest of export promotion, consider opting for the Whole Turnover Post-shipment Policy.
When a bank in India adds its confirmation to a foreign Letter of Credit, it binds itself to honour the scgc drawn by the beneficiary of the Letter of Credit without any recourse to him provided such drafts are drawn strictly in accordance with the terms of the Letter of Credit. No further premium is payable if the evgc is not declared successful in the bid. ECGC provides for an insurance cover named as Construction Works Policy to provide cover to an Indian contractor who executes a civil construction job abroad.
All contracts for export on deferred payment terms and contracts for turnkey Projects and construction works abroad require prior clearance of Authorised Dealers, EXIM Bank or the Working Group in terms of powers delegated to them as per exchange control regulations Kindly refer to ‘Projects Exports Manual’ of Reserve Bank of India. Any investments made by way of equity capital or untied loan for the purpose of setting up or expansion of overseas Projects will be eligible for cover under investment insurance.
Types of Insurance Documents. Amount insured shall be reduced progressively in the last five years of the insurance period.
In addition, the exporters have to face commercial risks of insolvency or protracted THE default of buyers. The overseas investment may be made either by way of equity or by way of loans Equity Any contribution made to the enterprise in return for shares either by cash remittances or by way of export of capital goods or services can be covered. The present paid-up capital of the company is Rs.
Hence these schemes are recommended to those specific audiences.
A coup or an insurrection may also scneme about the same result. The exporters have to submit annual report about the progress and working of the Project. The exporter was called upon to reimburse the bank with the said amount and, 4. ECGC Ltd, was established in July, to strengthen the export promotion by covering the risk of exporting on credit.
It is, therefore, important that the Contractor ensures that sceme Contract is well drafted scgeme provide clarity of the obligations of the two parties and for resolution of disputes that may arise ecbc the course of execution of the contract. It is, therefore, the appropriate policy for an exporter to take if the payments are open to both commercial and political risks. Specific Shipment Comprehensive Risks Policy; 2. Features of this scheme are Any investment made by way of equity capital or untied loan for the purpose of setting up or expansion of overseas projects will be eligible for cover under investment insurance.
Export credit agencies Foreign trade of India Ministry of Commerce and Industry India Government-owned insurance companies of India Financial services companies based in Mumbai Financial services companies established in Indian companies established in As the investor would be having a hand in the management of the joint venture, no cover for commercial risks would be provided under the scheme.
Export Credit Guarantee Corporation of India
If the terms and conditions of the contract undergo any change subsequently, ECGC should be informed of the same, so that changes, if any, in the applicable premium rates can be ascertained.
Retrieved from fcgc https: These scheme are targeted at specific audiences such as banks, investors in foreign countries and exporters taking up long term projects abroad, covering distinct risks faced by them.
The risks have assumed large proportions today due to the far-reaching political and economic changes that are dcheme the world. The covers issued by ECGC can be divided broadly into four groups: