On Tuesday, Export credit agency ECGC Ltd’s chairman and managing director (CMD) M Senthilnathan said that the export credit agency is likely to be listed on the stock exchange in the last quarter of the current financial year.

Last year, the government said it would soon begin listing state-owned entities through an initial public offering (IPO) in the next financial year.

According to Mr Senthilnathan, the Department of Investments and Public Assets Management (DIPAM) had mentioned that the listing of ECGC would follow the IPO of Life Insurance Company of India (LIC).

“DIPAM has done a preliminary review of the ECGC and forecasts their next direction. Initially, we were told the listing would take place around the last quarter of the financial year,” Mr Sentirnathan told reporters.

ECGC Ltd is a wholly owned central public sector enterprise that aims to enhance the competitiveness of exporters by providing them with credit risk insurance and related services.

On Tuesday, the state-owned entity launched a new programme to increase export credit risk insurance coverage to 90% to support small-value exports under the Export Credit Insurance for Banks Whole Turnover Packaging Credit and Post Shipment (ECIB-WTPC & PS) business.

The scheme is expected to benefit some small exporters who take advantage of export credits provided by banks that hold ECGC WT-ECIB insurance. It will enable small exporters to reach new markets/buyers and competitively diversify their existing product portfolio.

“We expect this to increase the account percentage by as much as Rs 20 crore, providing further stability to the ECGC portfolio,” Mr Senthilnathan said.

“By providing a 90% guarantee to banks, we expect these industries to benefit significantly from more small companies getting export credit from banks. We expect banks to offer more concessions. The end result will be for exporters to benefit, including lower interest rates,” he added.

The new scheme will allow banks with ECGC WT-ECIB insurance to explore the possibility of further reductions in interest rates.

A release said the increased cover percentage should be made available to the State Bank of India as per the previous year’s premium rate based on its favourable claim premium ratio.

For other banks, however, it said prevailing premium rates could increase modestly.

Manufacturers exporters using the working capital limit of up to Rs 20 crore fund-based export credits can enjoy enhanced protection, excluding gems, jewellery and diamond industries and exporters, the release said.