New Delhi: The Union Cabinet on September 29, 2021, approved the continuation of the National Export Insurance Account (NEIA) scheme and infusion of Rs 1,650 crore grant-in-aid over five years, from FY2021-2022 to FY2025-2026.
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi.
Capital infusion in NEIA will help tap the vast potential of project exports in the focus market. The move has been taken as part of a series of measures to provide a boost to the exports sector, the CCEA press release said.
NEIA Trust was established in 2006 to promote project exports from India that are of strategic and national importance.
“Corpus contribution of Rs 1,650 Crore will enhance the underwriting capacity of the Trust and will enable NEIA to support project exports worth Rs 33,000 Crore at full capacity utilization that in turn will translate into an estimated output of domestically manufactured goods to the tune of RS 25,000 Crore approximately,” the press release said.
“In addition, assuming an average 75% Indian content in the projects, in terms of the report ‘Export to Jobs’ by World Bank and International Labour Organisation, it is estimated that around 12000 workers will move into formal sector. Further, the total workers (number of both formal and informal) will increase by 2.6 lakh in the relevant sectors as per estimates based on the report,” it added.
The NEIA Trust promotes Medium and Long Term (MLT) /project exports by extending (partial/full) support to covers issued by ECGC (ECGC Ltd, formerly known as Export Credit Guarantee Corporation of India Ltd.) to MLT/project export and to Exim Bank for Buyer’s Credit (BC-NEIA) tied to project exports from India. (Press Release)