Daijiworld Media Network – Mangalore (NR/GA)

Mangalore July 7: The golden jubilee year function of the Export Credit Guarantee Corporation of India Ltd (ECGC) was held here on Friday, July 6. Its chairman and managing director A V Muralidharan speaking on the occasion stated that the ECGC has volunteered to reduce the premium rates for exporters in view of stiff competition faced by the Indian exporters from China.

Elaborating on the same, he said that this step has been initiated keeping in mind the Union Government’s growing concern over appreciating rupee as against the US dollar and its impact on Indian exports. The regulator’s – the Insurance Regulatory Development Authority (IRDA) approval has already been sought and the ECGC will shortly announce its revised rates.

Announcing this at the function Muralidharan hoped that the said move would enable India to meet the projected export target of US $ 160 billion in 2007-08.

According to Muralidharan presently ECGC is rated ‘IAAA’ by ICRA Limited and therefore the ECGC will strive even harder to seek a higher level of international rating. This in turn would instill greater confidence among its customers, he confided. He further informed the gathering that ECGC has also drawn up several plans for overseas operation and will very shortly open its branches in London (UK), in Dubai (Gulf), in Nairobi (Kenya) or in Lagos (Nigeria) in the African continent. Thus in this way it will be able to broad-base its activities.

Moreover, he observed that ECGC already has on board most major banks as partners, and the Corporation has plans on its anvil to bring in other major banks into its fold. Thereby enabling it to provide a vast bouquet of products from its existing 4,700 export branches to 7,500 branches in the near future.

With regard to future plans Murlidharan disclosed that ECGC is looking at niche public sector banks such as the Mangalore based Corporation Bank too.

The Corporation is already into export risk insurance coverage stated Murlidharan. However, it is also planning to venture into the domestic market as in his view the Union Government was keen to envisage a role for ECGC in this regard. And hence Muralidharan declared that the organization would make a foray into general insurance by 2011.