From UPSC perspective, the following things are important :
Prelims level : About the scheme
Mains level : Export promotion
- 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.