ECGC Incentive under Maharashtra State Export Promotion Policy 2023

Purpose:

The ECGC Incentive is a special export promotion benefit provided to eligible exporting MSMEs under the Maharashtra State Export Promotion Policy 2023. It reimburses the premium paid by MSMEs for export credit insurance coverage obtained from ECGC Limited.The incentive is intended to reduce the insurance cost incurred by MSME exporters and protect them against the risk of non-payment by overseas buyers. The number of eligible consignments depends on whether the MSME unit is located within or outside an Export Oriented Industrial Park.The policy was notified through Government Resolution No. Export 2023/CR 135/IND-7 dated 22 November 2023

Primary Benefit

Reimbursement of the premium paid for insurance coverage obtained from ECGC Limited for eligible export consignments.

Key documents:

• Udyam Registration Certificate.
• Importer Exporter Code issued by DGFT.
• PAN card of the enterprise.
• GST Registration Certificate, where applicable.
• ECGC insurance policy or coverage document.
• ECGC premium payment receipt.
• Commercial invoice.
• Packing list.
• Shipping bill.
• Bill of Lading or Airway Bill.
• Bank Realisation Certificate or Electronic Bank Realisation Certificate, where applicable.
• Details of eligible export consignments.
• Certificate confirming the location of the MSME unit.
• Bank account details and cancelled cheque.
• Chartered Accountant’s certificate, if prescribed.
• Declaration regarding non-availment of duplicate benefits.
• Any other document required by the Directorate of Industries or the implementing authority.

Commercial invoices, packing lists, shipping bills and Bills of Lading or Airway Bills are among the standard documents required for exports..

How to apply:

maitri.maharashtra.gov.in

FAQ

What is the benefit?

Refund of the ECGC premium for eligible export consignments.

Who can apply?

Eligible exporting MSMEs located in Maharashtra.

Does ECGC provide the reimbursement?

No. ECGC provides insurance coverage, while the premium reimbursement is offered under Maharashtra’s Export Promotion Policy.

Beneficiary:

The incentive is primarily applicable to exporting MSME units that: • Are registered as Micro, Small or Medium Enterprises. • Are located and operational in Maharashtra. • Undertake export activities. • Obtain eligible export credit insurance coverage from ECGC Limited. • Pay the applicable ECGC premium for eligible export consignments. • Comply with the conditions of the Maharashtra State Export Promotion Policy 2023 and its implementation guidelines. • Have the necessary export registrations, including an Importer Exporter Code and Udyam Registration. • Have not claimed duplicate reimbursement of the same premium under another government scheme. The policy provides the premium refund benefit to MSMEs located both within and outside Export Oriented Industrial Parks, although the number of eligible consignments differs by location.

Benefits:

• MSME units located outside Export Oriented Industrial Parks: Refund of the ECGC premium paid for the first five export consignments. • MSME units located within Export Oriented Industrial Parks: Refund of the ECGC premium paid for the first ten export consignments. • Reduces the cost of obtaining export credit insurance. • Helps MSMEs manage the risk of non-payment by overseas buyers. • Encourages new and existing MSMEs to enter international markets. • Improves exporter confidence while supplying goods on credit terms. • Supports the overall objective of increasing MSME exports from Maharashtra.