Government approves continuation of the National Export Insurance Account (NEIA) scheme and infusion of Rs. 1,650 crore Grant-in-Aid over 5 years

What is the News?

The Union Government has approved the contribution of Grant-in-aid (Corpus) of ₹1,650 Crore to the National Export Insurance Account (NEIA) over a period of five years, i.e. from FY 2021-2022 to FY 2025-2026.

What is the National Export Insurance Account(NEIA)?

National Export Insurance Account (NEIA) Trust was set up in 2006.

The trust aims to promote Medium and Long-Term (MLT) project exports by extending (partial/full) support to covers issued by ECGC to MLT/project export.

These projects should also be commercially viable and also strategically important.

Since its inception, NEIA has extended 213 covers with a consolidated project value of Rs. 53,000 crores, to 52 countries as of August 2021.

Its impact in enabling project exports has been most significant in Africa and South Asia.

How will the capital infusion help the NEIA?

The capital infusion in NEIA Trust will help the Indian Project Exporters (IPE) to tap the huge potential of project exports in the focus market. 

Moreover, support to project exports with Indian content sourced from across the country will also enhance the manufacturing in India.

Source: This post is based on the article “Government approves continuation of the National Export Insurance Account (NEIA)” published in PIB on 30th Sep 2021.