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Our Bureau

Chennai , June 11

EXPORT Credit Guarantee Corporation (ECGC) plans to shortly introduce a special credit insurance package for software exports that would be designed to meet the industry's unique challenges.

ECGC's Chairman and Managing Director, Mr P.M.A. Hakeem, said here on Thursday that he would approach the company's board of directors for approval for the credit insurance package for software exports.

He explained that the software industry, a key contributor to India's exports, faced challenges that were unique.

By way of example, Mr Hakeem drew attention to the impact of visa-related problems faced by industry hands. Such instances had a bearing on the business, he added.

In addition to software, Mr Hakeem said that ECGC would ask for the Central Government's support to underwrite overseas projects executed by Indian companies.

In view of the large sums involved in overseas projects, ECGC would need the Government's help to underwrite the related risk.

Another trend that had emerged was the growing importance of healthcare exports. Mr Hakeem said the pharmaceutical industry's export to Latin America had grown, and exporters' had drawn his attention to the challenges in insuring healthcare exports such as medical transcription.

Mr Hakeem said ECGC had registered a premium income of Rs 444 crore and claims of Rs 455 crore in 2003-04. However, with the help of income generated out of its investments, the company had made a profit before tax of Rs 92-93 crore (not yet finalised).

The move to increase ECGC's equity to Rs 800 crore from the current level of Rs 500 crore had been delayed on account of the recently concluded general elections.

Mr Hakeem said the company awaited a formal approval by the Cabinet Committee on Economic Affairs to augment its equity.

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