ECGC offers on-line services to customers

The Export Credit Guarantee Corporation of India (ECGC) is now offering e-connectivity to its customers for online filling of returns and forms and expanding its network.

The corporation, which has been serving the exporting community for more than four-and-half decades, has revamped its schemes during the past couple of years, the corporation officials said.

ECGC has introduced new products providing various options for its clients to choose from and to cater to their needs in international trade, the officials said.

V Ramchandran, general manager, ECGC, said during 2002-03, the aggregate value of business underwritten by ECGC was Rs 2,650 billion.

The total premium earned amounted to Rs 3,750 million, while the amount of claims paid during the same period amounted to Rs 4,370 million.

The underwriting capacity of ECGC has been considerably enhanced during the recent past by substantially augmenting the equity capital.

The paid-up capital of the corporation is Rs 5,000 million and it is being further increased with contributions of about Rs 600 million to Rs 1000 million per annum in the coming years, Ramchandran said.

Talking about the schemes offered by the ECGC, M N Chaudhari, deputy general manager, said one of the forward-looking products introduced by ECGC during the second half of 2002-03 was the non-recourse Export Maturity Factoring that would enable exporters to instantly realise their money on credit sales that could otherwise remain locked up in export receivables.

"Our company facilitates risk-free pre-financing of such factored receivables by commercial banks, thus opening up a very lucrative area to the banks for risk-free export financing. The schemes are designed as a comprehensive solution to exporters for all their needs and requirements relating to export of goods and services on credit," Chaudhari said.

Besides providing 100 per cent credit risk protection to an exporter, ECGC factoring would also take care of all their bother and hassle relating to credit appraisal on overseas customers, raising funds on export receivables to meet working capital requirements, follow-up and liaison with the buyer, collection of the amounts on due date and, in the event of default, managing recovery proceedings, thus leaving the exporter entirely free to concentrate on developing his business and expanding his markets.

"The entire recovery proceedings would be at the risk and cost of our company, Chaudhari said.

Ramchandran and Chaudhari were speaking at an exporters' meet jointly organised by the ECGC and the Rajkot Chamber of Commerce.

The corporation, in its effort to reach out its customers, has been expanding its branch network.

During the current fiscal year, ECGC added five more offices to its network at Chandigarh, Noida, Jodhpur, Rajkot and Vishakhapatnam, taking the total number of offices to 39 and two more at Vadodara and Tutucorin are being opened in the first week of January 2004.