Coface seeks easy norms

Coface, the main export credit insurance agency in France, has asked the government to ease norms for doing business in India.

"We have requested the Indian government to raise the foreign holding limit in insurance from 26 per cent to 49 per cent and also reduce the minimum capital investment requirement of $20 million", Francois David, Chairman of Coface, said here today.

David met Rakesh Mohan, secretary, department of economic affairs, and KT Chacko, director-general of foreign trade. David said the agency would submit a memorandum to the commerce ministry shortly.

Coface is a subsidiary of Natexis Banques Populares Group. Its services include credit insurance, credit information, corporate ratings, management of receivables and country risk assessment.

It has direct presence in 57 countries and operates in 93 countries via its partners in the Credit Alliance worldwide network. In India it partners with ICICI Lombard Insurance and Tokyo Marine Insurance.

With WTO regime set to open fresh trade opportunities, India's export would grow at a faster pace -- like, for example in textiles.

Right now over 90 per cent of the total export insurance premium business, which amounts to about $25 million, is dominated by the government owned Export Credit Guarantee Commission (ECGC).

"We have global expertise and would be keen to participate with greater freedom in the opportunities in Asia including India," said David.

China requires a minimum of $30 million as capital upfront before a foreign player can set up operations in India.