18, Sep 2019
Prelims level : Economics- Industries; Governance- Schemes Mains level : GS-III- Changes in industrial policy and their effects on industrial growth.
Why in News?
- To enhance the loan availability of exporters, and the MSME sector the Export Guarantee Corporation of India (ECGC) has launched a new scheme called ‘Nirvik’.
- To revive the export sector, Commerce Ministry also launched the common digital platform for the issuance of certificates of origin
- If there is any loss, then ECGC provided credit guarantee of up to 60% loss approximately.
- Now under new scheme Nirvik consumers and exporters will covered up to 90% and if there is any loss then in that case ECGC will refund 90% to the banks including principal and interest.
- Both pre and post shipment credit will also be covered under the new scheme.
- Banks will get up to 50 % within 30 days of complain lodge.
- Enhanced cover will ensure that Foreign and Rupee export credit interest rates will be below 4% and 8% respectively for exporters.
- The scheme envisages simplified procedure for settlement of claim and for provisional payment up to 50% within 30 days on production of proof of end-use of the advances in default by the Insured Bank.
Electronic Certificates of Origin (CoO):
- This platform will be a single access point for all exporters, for all Free Trade Agreements (FTAs)/ Preferential Trade Agreements (PTAs) and for all agencies concerned.
- As we know, for exports to countries with which India has free trade agreements (FTA), exporters have to show a certificate that the consignment originated in India.
- With the launch of this platform, these certificates can be obtained online and all the issuing authorities will be on the same portal.
- Certificate of Origin will be issued electronically which can be in paperless format if agreed to by the partner countries.Authorities of partner countries will be able to verify the authenticity of certificates from the website.