The Hindu : Andhra Pradesh / Hyderabad News : IT export firms scurry for insurance cover

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Friday, Jul 31, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

IT export firms scurry for insurance cover

HYDERABAD: Insurance cover is being sought by more number of IT exporting firms from the Export Credit Guarantee Corporation of India Ltd., in the wake of global recession, chairman and managing director A.V. Muralidharan said here on Thursday.

Talking to reporters on the sidelines of a seminar on ‘Managing Exports in a Challenging Economy’ organised by the Confederation of Indian Industry, he said many exporters had sought cover in the last six months including the top 10 IT companies.

In comparison, the IT sector accounted only for five per cent of ECGC’s total premium (Rs. 755 crore last fiscal) till last year.

However, it was adopting a cautious approach in issuing policies to IT firms as done in the case of insuring large turnovers of projects.

To a question, he said the response from micro, small and medium (MSME) exporters was poor to the Rs.350-crore stimulus package announced by the government to give enhanced insurance cover.

So far, the claims amounted for about Rs.10 crore and this was expected to go up to Rs. 35 crore by the end of the year.

Under the Export Credit Insurance Policies, the ECGC has enhanced the cover by five per cent to 95 per cent.

Earlier, inaugurating the seminar, He expressed confidence that fluctuations in the US dollar may not have adverse impact in the long run.

RBI regional director N. Krishnamohan also spoke.

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