Source: PIB, Union Budget 2020-21 & The Hindu
Key features
- The Union Budget 2020-21 mentions that new scheme NIRVIK will be launched to achieve higher export credit disbursement, which provides for:
- Higher insurance coverage
- Reduction in premium for small exporters
- Simplified procedure for claim settlements.
- Nirvik (Niryat Rin Vikas Yojana) scheme will provide enhanced insurance cover and reduce the premium for small exporters.
- The scheme is being prepared by the Commerce Ministry.
- Under the scheme, also called the Export Credit Insurance Scheme (ECIS), the insurance guaranteed could cover up to 90 percent of the principal and interest.
- The Ministry has also proposed to subsidize the premium under the scheme that has to be paid by exporters of certain key sectors.
- The Export Credit Guarantee Corporation currently provides credit guarantee of up to 60 percent loss.
Significance
The scheme is expected to enhance accessibility and affordability of credit to exporters and reduce liquidity requirement
