New Delhi, Sep 29 (IANS): The Centre on Wednesday approved capital infusion of Rs 4,400 crore to the ECGC, formerly known as the Export Credit Guarantee Corporation of India, over a period of five years.

The investments will be made from FY2021-2022 to FY2025-2026.

Besides, the approved infusion, along with the company's listing process through the Initial Public Offering (IPO), is expected to increase the underwriting capacity of the ECGC to support more exports.

"ECGC plays a wider role in supporting exports from labour-intensive sectors and encourage bank lending to enterprises of small exporters, thereby leading to their revival. Capital infusion in the ECGC will enable it to expand its coverage to export- oriented industry, particularly labour-intensive sectors," an official communique said on Wednesday.

"The approved amount will be infused in instalments thereby increasing the capacity to underwrite risks up to Rs 88,000 crore and this will enable the ECGC to issue covers that can support additional exports of Rs 5.28 lakh crore over the five-year period in line with the existing pattern."

According to report "Exports to Jobs" by the World Bank and the International Labour Organisation, Rs 5.28 lakh crore exports will lead to formalisation of 2.6 lakh workers.

Further, the total number of workers both formal and informal will increase by 59 lakh, as per the report.