Reluctance of ECGC to issue fresh insurance cover will have impact on exports and execution of projects: PHD Chamber

New Delhi [India], December 8 : A number of project exporters have huge export orders/projects and have already executed agreements with foreign countries, said PHDCCI President, Saket Dalmia in his detailed representation submitted to Finance Minister Nirmala Sitharaman.
He further said that however, they are not in a position to execute the orders and start the projects in view of the fact that EXIM bank is unable to make disbursements due to the non-availability of ECGC cover.
"ECGC is reluctant to issue the coverage to EXIM bank because of the default committed by Sri Lanka and Zambia. This is adversely affecting the overall export performance of Indian exporters,"
said PHDCCI President, Saket Dalmia.
In his representation, Dalna said that the Government of India has called on the export community to boost exports and achieve the merchandise export target of USD 1 Trillion by 2030, in line with the Prime Minister's clarion call "Local goes Global".
Saket Dalmia said that the ECGC cover must be more robust to develop basic export infrastructure and to strengthen manufacturers and exporters to scale up export volumes and to create more employment in their factories for the growing young population in the country.
"At this juncture, it is therefore very essential that the Finance Ministry immediately extend support to ECGC to enable them to issue fresh ECGC cover which would facilitate EXIM Bank to make disbursals. This will not only enable the exporters to execute the orders and start the projects as per the commitment but also pave the way for achieving the envisaged export target," said PHDCCI President, Saket Dalmia.