Tirupur, July 7: The Export Credit Guarantee Corporation of India (ECGC) has initiated measures to extend its reach to far flung areas, its chairman and managing director, Dev Mehta, said on Monday.

Participating in a customers meet, Mehta said that ECGC had proposed to open more branches and appoint agents for a wider reach among the people in the country.A consultancy had been approached to make suggestions to improve the functioning and the corporation was awaiting its recommendations, Mehta said.ECGC, covering about 17 per cent of the Indian export, was expected to increase its coverage at least to 25 per cent within three years, he said.The corporation had proposed to increase the premium rates, which was at present just 0.67 paise compared to the global average of Rs 1.50, he said addding that it was proposed to fix the premium in slab basis depending on the quantity of exports. ECGC had sent proposals to the centre to enhance the capital to Rs 1,000 crore in order to cover risk business to the tune of Rs 50,000 crore, he said.

Presently the corporation had just Rs 50 crore as its capital to cover business worth Rs 30,000 crore, Mehta said. Mehta also appealed to the exporters to help the corporation in recovery and in reducing the need for unnecessary legal action.

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