| Speaking to Business Standard, DVS Sai Ramam, branch manager of ECGC, Vizag region, said, "During 2005-06, the Vizag office collected Rs 3.22 crore as premium on both policy and guarantee schemes as compared to Rs 2.66 crore in 2004-05. We expect this income to increase to more than Rs 3.60 crore in 2006-07." |
| During 2005-06, ECGC provided insurance cover to Rs 203 crore worth of exports under the policy scheme and more than Rs 1,527 crore worth of exports under the guarantee scheme as compared to Rs 175 crore and about Rs 1,425 crore respectively in 2004-05, he said. |
| The corporation paid Rs 8.08 crore to local exporters during the financial year 2005-06 as claims under both policy and guarantee schemes and recovered Rs 1.34 crore against claims paid by banks. |
| Of the total premium collection of Rs 3.22 crore in 2005-06, about Rs 2.31 crore was generated through banks under the bank advances risk cover scheme. Ramam said that most of the corporation's revenue had come from seafood exporters. |
| "The anti-dumping duty imposed by the US government has forced the seafood exporters to go in for insurance cover so as to avoid risks," he said, adding, "the US importers are now apprehensive about opening letters of credit (LCs) and prefer to do business on credit." |
| ECGC provides insurance cover on all exports including software and software projects. With several IT majors like Satyam and Wipro setting up base at Vizag, ECGC Vizag expects a good business through IT-enabled services and software exports. |
| "During this fiscal, we have identified four companies in this region as willful defaulters. We have advised banks not to give further advances to these companies especially on export materials," Ramam said. |
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