CCEA nod for grant-in-aid of Rs 1,650 crore to National Export Insurance Account
New Delhi, September 30, 2021
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved contribution of grant-in-aid (corpus) of Rs 1,650 crore to the National Export Insurance Account (NEIA) over five years, from FY 2021-2022 to FY 2025-2026.
NEIA Trust was established in 2006 to promote project exports from India that are of strategic and national importance.
It promotes Medium and Long Term (MLT) project exports by extending partial or full support to covers issued by ECGC (formerly known as Export Credit Guarantee Corporation of India Ltd.) to MLT project export and Exim Bank for Buyer’s Credit (BC-NEIA) tied to project exports from India.
An official press release said the capital infusion in NEIA Trust would help Indian project exporters tap the huge potential of project exports in the focus market. Support to project exports with Indian content sourced from across the country will enhance the manufacturing in India.
A corpus contribution of Rs 1,650 crore will enhance the underwriting capacity of the Trust and enable NEIA to support project exports worth Rs 33,000 crore at full capacity utilization that, in turn, will translate into an estimated output of domestically manufactured goods to the tune of Rs 25,000 crore approximately.
In addition, assuming an average of 75% Indian content in the projects, in terms of the report ‘Export to Jobs’ by World Bank and International Labour Organisation, it is estimated that around 12,000 workers will move into the formal sector.
Further, the total number of workers in both formal and informal sectors will increase by 2.6 lakh in the relevant sectors as per estimates based on the report.