Financial Daily from THE HINDU group of publications
Tuesday, Aug 06, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Industry & Economy - Exports & Imports


ECGC scheme to cover loss over discrepancies

Our Bureau

KOLKATA, Aug. 5

IN a bid to boost exports from the north-eastern region to Bangladesh, the Export Credit Guarantee Corporation of India Ltd has introduced a scheme to cover losses arising out of discrepancies on documents under LC at higher premium rates, provided the LC terms permit direct delivery of goods to importers. The cover is to the extent of 25 per cent of the gross invoice value.

Exports to Bangladesh from the North Eastern region account for nearly Rs 300 crore annually, out of a total export of nearly Rs 2400 crore to Bangladesh from eastern India, and all exports are against LCs opened by non-prime banks in Bangladesh.

Talking to Business Line here, Mr R.V. Ajwani, Deputy GM and head of ECGC, eastern region, said the corporation was aware that some exporters of the region have encountered payment problems under LCs on account of discrepancy in documents from importers in Bangladesh.

Analysing the situation with regard to exports to Bangladesh from the North-East, Mr Ajwani said ECGC has started advising exporters to request importers in Bangladesh to incorporate the condition of direct delivery in the fresh LCs.

He said the LCs from Bangladesh banks do not stipulate direct delivery of goods to buyers.

Typically, as per the prevailing trade practice, he said that in most transactions, goods are delivered the same day and documents are negotiated after 10-20 days.

Asked why ECGC cover has not gained popularity in the region, he said the goods reach the destination by road well before the documents reach the hands of the LC opening bank.

Send this article to Friends by E-Mail

Stories in this Section
Cement majors report higher sales in July


At lower price realisations... Earning even a small profit is achievement for cement cos
Manipur: `Jewel of the East' or `Wild East'?
`Ghana can act as gateway to markets in US, Europe'
PM scraps petrol pump allotments
Iran LNG project
Hydel takes hit; States seek aid for costly power
KERC order on equity returns likely to jack up power tariff
Karnataka facing power crisis
Mescom firm on recovering dues
Buoyancy in textile exports may spur cotton imports
Amendment to Coal & Mines Bill dropped
Nod for hike in coal royalty rates
Karnataka cable operators to discuss CAS
Tutorials come under scrutiny in Karnataka
Paper companies' margins to get a boost, says study — Rise in operating rates, paper prices seen
Call for talks on WTO implementation issues
Kerala trade unions to strike work today
ICFAI seminar from Aug 23
Hyderabad Engagements
Fruit, vegetable exports to EU may be certified
India must evolve own model for export thrust: FIEO
Karnataka draft export policy being finalised
`Maturity factoring not to affect normal banking for exporters'
ECGC scheme to cover loss over discrepancies
75 pc of districts facing imminent drought
`2002 could well be drought monsoon year'
`Liberal aid likely for tackling drought in AP'
Eco-tourism plan for Sunderbans


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line