With reference to National Export Insurance Account (NEIA) scheme, consider the following: It aims to ensure the availability of credit risk cover for projects and other high-value exports, desirable from the point of view of national interest. The scheme is developed by Ministry of Finance. Which of the statements given above is/are correct?

Q. With reference to National Export Insurance Account (NEIA) scheme, consider the following:
1. It aims to ensure the availability of credit risk cover for projects and other high-value exports, desirable from the point of view of national interest.
2. The scheme is developed by Ministry of Finance.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Statement 1 is correct: It has been set up by the Government of India to facilitate medium and long-term exports, which are commercially viable, considering the limitations of the ECGC Limited in providing adequate cover on its own and non-availability of reinsurance cover to such exporters.

NEIA aims to ensure the availability of credit risk cover for projects and other high-value exports, which are desirable from the point of view of national interest, but which ECGC is unable to underwrite at terms which will not affect the competitiveness of the exports.

Statement 2 is incorrect: The scheme is developed by Ministry of Commerce and Industry

Source: PIB

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS