Exporters have been assured implementation of the new export credit insurance scheme `Nirvik’, offering lower premiums and faster claims settlement, in 2020-21, in the Union Budget announced on Saturday.

Under the scheme, first announced by Finance Minister Nirmala Sitharaman in September 2019, the insurance cover guaranteed is expected to cover up to 90 per cent of the principal and interest and will include both pre and post-shipment credit.

The Finance Minister proposed allocation of ₹ 27,300 crore for industry and commerce in 2020-21.

“The new scheme of NIRVIK will immensely help the small exporters by increasing the insurance cover given to banks and reducing the premium for exporters. This is most timely as during the period of uncertainties and slow down, higher default in payments are likely to increase,” said exporters’ body Fieo in a tweet.

Goyal, following a press conference after the announcement of the Nirvik scheme in September, had said that the gems, jewellery and diamond (GJD) sector borrowers with limit of more than ₹ 80 crore will have a higher premium rate as compared to non-GJD sector borrowers of this category due to the higher loss ratio. The ECGC cover provides additional comfort to banks as the credit rating of the borrower is enhanced to AA rated account.

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