Calcutta, July 10: The government-owned Export Credit Guarantee Corporation (ECGC) is eyeing a net worth up to Rs 10,000 crore as part of its efforts towards lowering the risk associated with export cover and the strengthening of its balance sheet. The export credit agency has also sought capital support from the central government.

The ECGC has an authorised share capital of Rs 5,000 crore, a paid-up capital of Rs 1,450 crore and a net worth of Rs 3,619 crore as of March 31, 2017.

It is engaged in the business of providing credit insurance to exporters against the non-payment of risks by overseas buyers because of commercial and political reasons. It also provides insurance to banks against risks in export loans to their borrowers.

The overall business - exporters and banks - covered during 2016-17 stood at over Rs 265,000 crore.

"We had engaged Crisil to study our existing needs and based on the projections have given a proposal to the government. Ideally the net worth should increase by 2020, because of the projections of the government and commitments we have to take," ECGC chairman and managing director Geetha Muralidhar told The Telegraph.

The ECGC paid out 578 claims amounting to Rs 207 crore to exporters under direct policies and 200 claims amounting to Rs 679 crore during 2016-17. The solvency ratio of the insurer was 8.88 per cent as on March 31, 2017 against the regulatory requirement of 1.5.

The claims paid are spread across sectors such as agricultural products, engineering goods, gems and jewellery, readymade garments, basic chemicals and pharmaceuticals. The ECGC has lowered premium by an average of 17 per cent for its policy covers.

"Claims in terms of insuring the receivables of the exporters are very much in control because our underwriting is very structured. We continuously monitor our claim premium ratio and we alter our premium rates," Muralidhar said.