The Centre is likely to come up with a special scheme for exporters, under which premium subsidy will be provided up to Rs 8,000 crore on export credit insurance, sources informed CNBC TV18. The move is expected to help exporters in getting easier and cheaper credit.
According to the sources, under the proposed scheme 90 percent of the export credit will be insured. Currently under Export Credit Insurance for Bank (ECIB) facility 60 percent of export credit gets insured by ECGC (Export Credit Guarantee Corporation). The Centre will provide the additional cost of premium as a premium subsidy. Premium subsidy rate will vary from sector to sector.
For next five years total cost of premium subsidy has been estimated at around Rs 8,000 crore. Total export credit disbursement supported over the five year period under this scheme is estimated at around Rs 26 lakh crore.
A sources said the main purpose of this scheme is to revive export credit disbursement and to ensure flow of adequate and affordable export credit to the exporters.
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