Centre keen to expand ECGC cover to individual jewellery exporters

Union minister for Commerce and Industry Piyush Goyal on Thursday said that the Centre was keen to expand the ECGC (Export Credit Guarantee Corporation) cover, now provided to banks towards the credit limits for exporters, to even individual exporters of gems and jewellery.

Union minister for Commerce and Industry Piyush Goyal on Thursday said that the Centre was keen to expand the ECGC (Export Credit Guarantee Corporation) cover, now provided to banks towards the credit limits for exporters, to even individual exporters of gems and jewellery.

He was speaking at the India International Jewellery Trade Show (IIJS) organised by the Gem & Jewellery Export Promotion Council at Jio Centre in Mumbai.

“We have now started giving ECGC cover for the whole turnover that the gems and jewellery industry must be having. They are right now given to the banks who are lending money to you,” the minister told the gathering of Gem & jewellery exporters.

“I am keen to expand that. I have often asked the captains of the industry to forge an ECGC, government and industry partnership which will ensure that the baggage of the past can be erased. There are a few bad eggs. But sadly these bad eggs have left sour taste in the system,” he said referring to the diamond merchants who had ran away with banks’ money.

“But the industry, ECGC and the government can come and work together and we can look at individual policies also for individual exporters. We can start expanding the counters of credit. We can start looking at a collective, co-operative methodology,” he said.

The minister suggested the formation of a committee having representation from ECGC, the government, GJEPC that can frame some mechanism which would help exporters avail the credit cover.

It can happen if industry would play a pro-active role and associations get involved, the minister said.