The government of India is to set up an Export Insurance Guarantee Fund of Rs 20bn (US$444.3m) to provide risk cover for Indian exports.
The state-owned Export Credit Guarantee Corporation of India (ECGC), would be the implementing authority for it, its chairman and managing director P K Dash said.
"We are working on modalities for setting up the fund and Rs 6bn would be allocated in the current plan (Xth) and Rs 14bn in the next plan," Dash said at the function for announcing a tie up between the Multilateral Investment Guarantee Agency (MIGA), ECGC and Exim Bank.
He said the fund to provide risk cover to exporters has got an in-principle agreement and the final approval was awaited from the cabinet, adding that under the scheme the government would bear 80 per cent of the risk while the balance would be covered by ECGC.
