What is ECGC's mission and role?
ECGC's mission is to support the Indian export industry by providing cost-effective insurance and trade-related services. It fulfils the role of export promotion by offering a range of credit insurance services to exporters and banks in India. It issues policies to exporters to cover their payment risks on account of insolvency and default of buyers as also political risks like war, import restrictions and foreign exchange repatriation delay.

What will be the repercussion of opening up of the insurance sector on ECGC?
Opening up of the insurance sector has made it possible for private sector companies to set up life and general insurance ventures either on their own or with equity participation by foreign companies. It has also enabled Indian banks to enter into insurance business.

Export credit insurance is a specific business, which is carried out internationally with some element of government support as it has an export promotion motto attached and is not solely profit-motivated. In most countries, export credit insurance is provided by the government department or agency; in a few others, it is offered by the joint sector or private companies. In view of this, we feel that new entrants would not be eager to take up export credit insurance. However, ECGC is prepared to face any kind of competition.

What measures have you taken to broad-base services and operations?
Our core competence is in the field of export credit insurance for both exporters and bankers. On the underwriting front, we have a broad-based classification of countries from four to seven groups with effect from April 2000 in line with the international practice for sharper distinction of risks. On the distribution front, we have expanded our service network. Today, ECGC has got 25 branch offices at important export centres and three sales promotion agencies in the country.

We have introduced schemes like Contract & Services Policy, Long Term Exchange Fluctuation Risks Cover, Overseas Investment Insurance for exporters and Whole Turnover Pre-shipment and Post-shipment Guarantees as well as Export Performance Guarantees for banks. We have started providing credit information services through an alliance with Dun & Bradstreet w.e.f. July 1999. Future plans include providing other trade-related services like export debt collection and export factoring, if found feasible.

How do you plan to assimilate IT in your operations?
All our offices are computerised and records of overseas buyers can be obtained from our head office. A massive IT upgradation exercise has been undertaken. This involves linking all branches to the head office through a wide area network.

What are your international affiliations and plans to further international cooperation?
We are one of the oldest members of "Berne Union"-the International Association of Credit & Investment Insurers-and has regularly been taking part in meetings where issues related to export credit and investment insurance are discussed and protocols, approaches and consensus arrived at.

During the last four years, we have signed agreements with its counterparts in five countries, namely, Russia, Uzbekistan, Poland, Israel and Hungary with a view to interchanging information and expertise. We have also taken membership of the International Institute of Finance, Washington. ECGC had signed an alliance with Dun & Bradstreet Corporation, and has recently become a member of Credit Alliance of COFACE.

You had undertaken organisational restructuring a few years back. Is it complete?
Our restructuring consultants, Coopers & Lybrand, had submitted 239 recommendations, of which 203 were accepted for implementation in a phased manner in a period of two years, starting April 1998.

How will your joint web site with a French institution benefit customers/exporters?
Our alliance with COFACE will enable us to share its database and their underwriting expertise as well as use their debt collection services. The website will provide important information related to export trade under a single roof.