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					     International Business Management




Export Credit Guarantee Corporation
               of India
What is ECGC?

• Export Credit Guarantee Corporation of
  India Limited, was established in the year
  1957 by the Government of India to
  strengthen the export promotion drive by
  covering the risk of exporting on credit.
What does ECGC do?
                                           1/2
• Provides a range of credit risk insurance
  covers to exporters against loss in export of
  goods and services
• Offers guarantees to banks and financial
  institutions to enable exporters to obtain
  better facilities from them
What does ECGC do?
                                       2/2
• Provides Overseas Investment Insurance
  to Indian companies investing in joint
  ventures abroad in the form of equity or
  loan
How does ECGC help exporters?
                                          1/2
 • Offers insurance protection to exporters
   against payment risks
 • Provides     guidance   in   export-related
   activities
 • Makes available information on different
   countries with its own credit ratings
How does ECGC help exporters?
                                        2/2
• Makes it easy to obtain export finance
  from banks/financial institutions
• Assists exporters in recovering bad debts
• Provides information on credit-worthiness
  of overseas buyers
Need for export credit insurance


• Risks even at the best of times
• War or civil war may block or delay
  payment
• Coup or an insurrection
• Balance of payment problems
• Insolvency or protracted default of buyers
Policies & Products
 Credit Insurance Policies
SCR or Standard Policy
                                          1/2
• Shipments (Comprehensive Risks) Policy,
  commonly known as the Standard Policy,
  is the one ideally suited to cover risks in
  respect of goods exported on short-term
  credit, i.e. credit not exceeding 180 days.
• This policy covers both commercial and
  political risks from the date of shipment.
SCR or Standard Policy
                                          2/2
• It is issued to exporters whose anticipated
  export turnover for the next 12 months is
  more than Rs.50 lacs.
• The appropriate policy for exporters with
  an anticipated turnover of Rs.50 lacs or
  less is the Small Exporter's Policy,
  described separately.
  SCR or Standard Policy
Commercial Risks
  • Insolvency of the buyer
  • Failure of the buyer to make the payment
    due within a specified period, normally
    four months from the due date
  • Buyer's failure to accept the goods, subject
    to certain conditions
  SCR or Standard Policy
Political Risks                              1/2
  • Imposition     of   restriction    by    the
    Government of the buyer's country or any
    Government action, which may block or
    delay the transfer of payment made by the
    buyer
  • War, civil war, revolution or civil
    disturbances in the buyer's country. New
    import restrictions or cancellation of a
    valid import license in the buyer's country
  SCR or Standard Policy
Political Risks                             2/2
  • Interruption or diversion of voyage outside
    India resulting in payment of additional
    freight or insurance charges which can not
    be recovered from the buyer
  • Any other cause of loss occurring outside
    India not normally insured by general
    insurers, and beyond the control of both
    the exporter and the buyer
Small Exporters Policy

• The Small Exporter's Policy is basically the
  Standard Policy, incorporating certain
  improvements in terms of cover, in order
  to encourage small exporters to obtain and
  operate the policy.
• It is issued to exporters whose anticipated
  export turnover for the period of one year
  does not exceed Rs.50 lacs.
Small Exporters Policy
                                          1/8
• Period of Policy: Small Exporter's
  Policy is issued for a period of 12 months,
  as against 24 months in the case of
  Standard Policy.
• Minimum premium: Premium payable
  will be determined on the basis of
  projected exports on an annual basis
  subject to a minimum premium of Rs.
  2000/- for the policy period
Small Exporters Policy
                                          2/8
• No claim bonus in the premium rate is
  granted every year at the rate of 5% (as
  against once in two years for Standard
  Policy at the rate of 10%).
• Declaration of shipments: Shipments
  need to be declared quarterly (instead of
  monthly as in the case of Standard Policy).
Small Exporters Policy
                                         3/8
• Declaration of overdue payments:
  Small exporters are required to submit
  monthly declarations of all payments
  remaining overdue by more than 60 days
  from the due date, as against 30 days in
  the case of exporters holding the Standard
  Policy.
Small Exporters Policy
                                           4/8
• Percentage of cover: For shipments
  covered under the Small Exporter's Policy
  ECGC will pay claims to the extent of 95%
  where the loss is due to commercial risks
  and 100% if the loss is caused by any of the
  political risks (Under the Standard Policy,
  the extent of cover is 90% for both
  commercial and political risks).
Small Exporters Policy
                                     5/8
• Waiting period for claims: The normal
  waiting period of 4 months under the
  Standard Policy has been halved in the
  case of claims arising under the Small
  Exporter's Policy.
Small Exporters Policy
                                                      6/8
• Change in terms of payment of extension in
  credit period
  – A small exporter may, without prior approval of ECGC
    convert a D/P bill into DA bill, provided that he has
    already obtained suitable credit limit on the buyer on
    D/A terms.
  – Where the value of this bill is not more than Rs.3 lacs,
    conversion of D/P bill into D/A bill is permitted even if
    credit limit on the buyer has been obtained on D/P terms
    only, but only one claim can be considered during the
    policy period on account of losses arising from such
    conversions.
Small Exporters Policy
                                              7/8
 – A small exporter may, without the prior
   approval of ECGC extend the due date of
   payment of a D/A bill provided that a credit
   limit on the buyer on D/A terms is in force at
   the time of such extension.
Small Exporters Policy
                                                 8/8
• Resale of unaccepted goods: If, upon non-
  acceptance of goods by a buyer, the exporter sells
  the goods to an alternate buyer without
  obtaining prior approval of ECGC even when the
  loss exceeds 25% of the gross invoice value,
  ECGC may consider payment of claims upto an
  amount considered reasonable, provided that
  ECGC is satisfied that the exporter did his best
  under the circumstances to minimize the loss.
Specific Shipment Policy -
Short Term (SSP-ST)

• Specific Shipment Policies - Short Term
  (SSP-ST) provide cover to Indian
  exporters against commercial and political
  risks involved in export of goods on short-
  term credit not exceeding 180 days.
  Exporters can take cover under these
  policies for either a shipment or a few
  shipments to a buyer under a contract
  Risks covered under SSP (ST)
Commercial Risks                         1/3
  • Insolvency of the buyer
  • Failure of the buyer to make the payment
    due within a specified period, normally
    four months from the due date.
  • Buyer's failure to accept the goods
  Risks covered under SSP (ST)
Political Risks                                  2/3
  • Imposition of restrictions by the Government of the
    buyer's country or any Government action which
    may block or delay the transfer of payment made by
    the buyer
  • War, civil war, revolution or civil disturbances in
    the buyer's country
  • New import restrictions or cancellation of a valid
    import license
  • Interruption of voyage outside India resulting in
    payment of additional freight or insurance charges
    which cannot be recovered from the buyer
  Risks covered under SSP (ST)
Insolvency & default of LC opening bank    3/3
  • Insolvency of the LC opening bank
  • Failure of the LC opening bank to make
    the payment due within a specified period,
    normally four months, from the due date
Risks not covered under SSP (ST)
                                         1/2
• Commercial disputes including quality
  disputes raised by the buyer, unless the
  exporter obtains a decree from a
  competent court of law in the buyer's
  country in his favour
• Causes inherent in the nature of goods
• Buyer's failure to obtain necessary import
  or exchange authorization from authorities
  in his country
Risks not covered under SSP (ST)
                                           2/2
• Insolvency or default of any agent of the
  exporter or of the collecting bank
• Loss or damage to goods
• Exchange rate fluctuation
• Failure of the exporter to fulfill the terms
  of the export contract or negligence on his
  part
• Non-payment under a letter of credit due
  to any discrepancy pointed out by the LC
  opening bank
Export (Specific Buyers)
Policy

• Buyerwise Policies - Short Term (BP-ST)
  provide cover to Indian exporters against
  commercial and political risks involved in
  export of goods on short-term credit to a
  particular buyer. All shipments to the
  buyer in respect of whom the policy is
  issued will have to be covered (with a
  provision to permit exclusion of shipments
  under LC).
Different types of BP (ST)

• Buyerwise (commercial and political risks)
  Policy - short-term
• Buyerwise (political risks) Policy - short-
  term.
• Buyerwise (insolvency & default of L/C
  opening bank and political risks) Policy -
  short-term
Export (Specific Buyers) Policy


• The Maximum Liability (ML) is the limit up to
  which ECGC would accept liability under the
  policy
• A credit assessment fee of Rs. 1000/- shall be
  payable for proposals for buyerwise policy in
  respect of each buyer/bank.
• A credit enhancement fee of Rs. 500/- is payable
  in case an enhancement in the limit is desired
  due to increased volume of business.
Obligations on the part of the
exporter holding BP

• Submission of statement of shipments made:
  Exporter has to submit, within 15 days after the
  end of the quarter, a statement of shipments
  made during the quarter in respect of the
  buyer/bank covered under the Buyer wise policy
• Submission of statement of overdue: On or
  before 15th of every month is required to a
  statement of payments against the shipments
  under the contract which have remained overdue
  for more than thirty days from the due date
• Intimation of event affecting the risk: If the
  exporter comes to know any event likely to affect
  the risk the same has to be intimated to ECGC
  and in any case by not later than 30 days
• Action for minimizing loss: Immediate steps are
  to be taken in the event of non-payment for any
  shipment. On learning of non-payment for the
  shipment, for which the policy is obtained,
  exporter is required to take action to prevent /
  minimize the loss
Export Turnover Policy

• Turnover policy is a variation of the
  standard policy for the benefit of large
  exporters who contribute not less than Rs.
  10 lacs per annum towards premium.
  Therefore all the exporters who will pay a
  premium of Rs. 10 lacs in a year are
  entitled to avail of it.
The Buyer Turnover Policy V/s
Standard Policy
                                           1/2
• The turnover policy envisages projection
  of the export turnover of the exporter for a
  year and the initial determination of the
  premium payable on that basis, subject to
  adjustment at the end of the year based on
  actuals
The Buyer Turnover Policy V/s
Standard Policy
                                              2/2
• The policy provides additional discount in
  premium with an added incentive for increasing
  the exports beyond the projected turnover and
  also offers simplified procedure for premium
  remittance and filing of shipment information
• The holders of turnover policy need not submit
  monthly declarations of shipment. Instead, they
  have only to submit a statement of shipments
  made during the quarter in a prescribed format
  within 30 days of the end of the quarter
Buyer Exposure Policies

• There has been a demand for
  simplification of the procedures as well as
  for rationalization of the premium
  structure. Considering the requirements of
  such exporters, the Corporation has
  decided to introduce policies on which
  premium would be charged on the basis of
  the expected level of exposure.
Buyer Exposure Policies

• Two types of Exposure policies are offered,
  viz,
  – Exposure (Single Buyer) Policy – for covering
    the risks on a specified buyer and
  – Exposure (Multi Buyer) Policy – for covering
    the risks on all buyers.
Exposure (Single Buyer) Policy
                                           1/2
• Buyer Exposure Policy will be issued for
  each buyer covering all the exports to be
  made to the buyer during a period of
  twelve months.
• If the exporter has opted for commercial
  and political risks cover, failure of the LC
  opening bank in respect of exports against
  LC will also be covered, for the banks with
  World Rank (WR) up to 25,000 as per
  latest Banker’s almanac
Exposure (Single Buyer) Policy
                                                  2/2
• For covering any bank with ranking beyond that
  level, the exporter has to obtain specific approval
  from the branch, which issued the policy prior to
  making the shipment
• Shipments to the buyers covered under Buyer
  Exposure Policies would be excluded from the
  purview of the Standard Policy. Risks covered
  would be same as covered under the existing
  Buyerwise Policy.
Exposure (Multi Buyer) Policy
                                           1/2
• Some exporters export to large number of
  buyers. The number of shipments made by
  them is also quite high. They may not find
  it convenient to apply for buyer exposure
  policy for all their buyers. It may also be
  difficult for them to declare their exports
  shipment-wise under the Standard
  policies. In order to meet the needs of such
  exporters, “Multi-buyers Exposure Policy”
  has been introduced.
Exposure (Multi Buyer) Policy
                                        2/2
• Exporters can take cover for an Aggregate
  Loss Limit (ALL) on all their buyers to
  whom they propose to sell on credit terms
  in open cover countries
• While accepting the proposal, the
  Corporation would expect the ALL sought
  to be not less than 10% of the past 12
  month turnover applicable for the
  categories/countries for which cover is
  sough
Consignment Exports Policy


• There are two policies available for
  covering consignment export viz;
  – Consignment Exports (Stock-holding Agent)
  – Consignment Exports (Global Entity Policy)
Risks covered under Consignment
Exports (Stock-holding Agent)

• Commercial risks on both stock-holding
  agent and ultimate buyers with political risks
  for the entire period
• Commercial risks on the ultimate buyers only
  with political risks for the entire period
• Commercial risks on the stock-holding agent
  only with political risks for the entire period
• Only political risks for the entire period
Consignment Exports                (Stock
Holding Agent) Policy
                                                 1/2
• A consignment Exports (Stock-holding Agent)
  Policy will be appropriate for each exporter –
  stock holding agent combination provided the
  following criteria are satisfied:
  – Merchandise are shipped to an overseas entity in
    pursuance of an agency agreement
  – The overseas agent would be an independent and
    separate legal entity with no associate/sister
    concern relationship with the exporter
Consignment Exports                (Stock
Holding Agent) Policy
                                                2/2
• The agent’s responsibilities could be any or all of
  the following, viz., receiving the shipment, holding
  the goods in stock, identifying ultimate buyers and
  selling the goods to them in accordance with the
  directions, if any, of his principal (exporter); and
• The sales being made by the agent would be at the
  risk and on behalf of the exporter (whether or not
  such sales are in the agent’s own name or
  otherwise) in consideration of a commission or
  some similar reward or compensation on sales
  completed
Consignment      Exports     (Global
Entity) Policy

• The merchandise are shipped for
  stockholding to an overseas party who
  receives and holds the goods whether or
  not under written agreement
• The overseas party could be the exporter’s
  own branch office / authorized
  representative / warehousing agent /
  associate or sister concern / subsidiary
  company
Risks covered under Consignment
Exports (Global Entity Policy)

• Commercial risks on the ultimate buyers
  only with political risks for the entire
  period
• Insolvency of the global entity and
  commercial risks on ultimate buyers with
  political risks for the entire period
• Insolvency of the global entity with
  political risks for the entire period
Service Policy

• Where Indian companies conclude
  contracts with foreign principals for
  providing them with technical or
  professional services, payments due under
  the contracts are open to risks similar to
  those under supply contracts. In order to
  give a measure of protection to such
  exporters of services, ECGC has
  introduced the Services Policy
Different types of Services Policy


• Specific Services Contract (Comprehensive
  Risks) Policy
• Specific Services Contract (Political Risks)
  Policy
• Whole-turnover Services (Comprehensive
  Risks) Policy
• Whole-turnover Services (Political Risks)
  Policy
Specific Services Policies

• Specific Services Policy, as its name indicates,
  is issued to cover a single specified contract.
  It is issued to provide cover for contracts,
  which are large in value and extend over a
  relatively long period. Contracts under which
  the value of services to be rendered forms
  only a small part of a contract involving
  supply of machinery or equipment will be
  covered under an appropriate specific policy
  for supply contracts
Whole-Turnover Services Policies


• Whole-turnover services policies are
  appropriate for exporters who provide
  services to a set of principals on a
  repetitive basis and where the period of
  each contract is relatively short. Such
  policies are issued to cover all services
  contracts that may be concluded by the
  exporter over a period of 24 months
  ahead.
Software Project Policy

• It was found that the general services
  policy does not meet with the exact
  requirements of software exporters. It was
  therefore decided to introduce a new
  credit insurance cover to meet the needs of
  the software exporters, namely, software
  projects policy, where the payments will be
  received in foreign exchange
• The following software services will be
  eligible for cover under the Software
  Projects Policy:
  – Development of software off-shore (i.e. at the
    exporters location in India) to be delivered
    and implemented in the buyer’s (client)
    location
  – Development of software on-site of the client
    and supply and implementation
  – Both off-shore and on-site development
Features
                                                 1/2
• Instead of monthly declaration, exporter would
  be required to submit a progress report
  indicating the level of completion, payment
  sought and payment received and deviations in
  these areas
• The exporter has to specify in advance the
  manner in which the work in progress would be
  estimated
• Liability of the Corporation would be only for the
  work reported in the progress report
Features
                                               2/2
• The Corporation will have the right to examine
  the books of accounts and other documents of
  the exporter either on its own or through an
  authorized agency prior to admission of claim
• Certification by banks may be dispensed with in
  cases where it is felt that it is not possible
• Loss coverage will be restricted to 80% as there
  is no salvage possibility
IT-enabled Services (Specific
Customer) Policy

• ITES policy will provide cover in respect of
  contracts for rendering service during a
  defined period with billing on the basis of
  service rendered during a period say, a
  week, a month or a quarter, where the
  payments due for the services rendered
  will be received in foreign exchange
Features

• Monthly declaration indicating the services
  rendered, invoices raised and invoices paid will
  have to be submitted by the exporters in the
  prescribed form.
• The policyholder has to specify in advance the
  manner in which the work in progress would be
  estimated
• Liability of the Corporation would be for the
  services rendered and reported in the monthly
  declaration
• Cover will be given only up to 80%.
• The policy will be offered for contracts,
  which contain standard terms and
  conditions as per the norms and practices
  of the IT-enabled Services export industry
Construction Works Policy

• Construction Works Policy is designed to
  provide cover to an Indian contractor who
  executes a civil construction job abroad
Features

• The contractor keeps raising bills
  periodically throughout the contract
  period for the value of work done between
  one billing period and another
• To be eligible for payment, the bills have to
  be certified by a consultant or supervisor
  engaged by the employer for the purpose
Features

• Unlike bills of exchange raised by
  suppliers of goods, the bills raised by the
  contractor do not represent conclusive
  evidence of debt but are subject to
  payment in terms of the contract which
  may provide, among other things, for
  penalties or adjustments on various
  counts.
The risks covered by Construction
Works Policy

• Insolvency of the employer (when he is a
  non-Government entity)
• Failure of the employer to pay the
  amounts that become payable to the
  contractor in terms of the contract,
  including any amount payable under an
  arbitration award
The risks covered by Construction
Works Policy

• Restrictions on transfer of payments from
  the employer's country to India after the
  employer has made the payments in local
  currency
• Failure of the contractor to receive any
  sum due and payable under the contract
  by reason of war, civil war, rebellion, etc
The risks covered by Construction
Works Policy

• The failure of the contractor to receive any sum
  that is payable to him on termination or
  frustration of the contract if such failure is due to
  its having become impossible to ascertain the
  amount or its due date because of war, civil war,
  rebellion etc
• Imposition of restrictions on import of goods or
  materials (not being the contractor's plant or
  equipment) or cancellation of authority to
  import such goods or cancellation of export
  license in India, for reasons beyond his control
The risks covered by Construction
Works Policy

• Interruption or diversion of voyage outside
  India, resulting in his incurring in respect
  of goods or materials exported from India,
  of additional handling, transport or
  insurance charges, which cannot be
  recovered from the employer
Specific    Policy    for   Supply
Contract

• Contracts for export of capital goods or
  turnkey projects or construction works or
  rendering services abroad are not of a
  repetitive nature and they involve
  medium/long-term        credits.    Such
  transactions are, therefore, insured by
  ECGC on a case-to-case basis under
  specific policies
The different policies are

• Specific Shipment (Comprehensive Risks)
  Policy
• Specific Shipments (Political Risks) Policy
• Specific Contract (Comprehensive Risks)
  Policy
• Specific Contract (Political Risks) Policy.
• Specific Shipments (Comprehensive
  Risks) Policy - provides cover against all
  the risks covered under the Standard
  Policy for shipments to be made under the
  contract in question. It is, therefore, the
  appropriate policy for an exporter to take
  if the payments are open to both
  commercial and political risks
• Specific Shipments (Political Risks)
  Policy - Where the Commercial risks are
  absent e.g. where the payments are
  guaranteed by a bank or by the
  Government of the overseas country, the
  exporter may opt for the Specific
  Shipments (Political Risks) Policy for
  which the premium rate will be lower than
  that for the Comprehensive Risks Policy
• Specific Contract Policy (which also
  can be for comprehensive or political
  risks) - Specific Contract Policy differs
  from Shipments Policy in that the former
  provides the exporter not only with the
  post-shipment cover like the latter but also
  with some pre-shipment cover from the
  date of contract. Premium rates for
  Contract Policies will be higher than that
  for Shipment Policies
Insurance Cover for Buyer's
Credit and Line of Credit

• Buyer's Credit is a credit extended by a bank in
  India to an overseas buyer enabling the buyer to
  pay for machinery and equipment that he may be
  importing from India for a specific project.
• A Line of Credit is a credit extended by a bank in
  India to an overseas bank, institution or
  government for the purpose of facilitating
  import of a variety of listed goods from India
  into the overseas country.
Policies & Products
 Guarantees to Banks
Packing Credit Guarantee

• The Packing Credit Guarantee of ECGC
  helps the exporter to obtain better and
  adequate facilities from their bankers. The
  Guarantees assure the banks that, in the
  event of an exporter failing to discharge
  his liabilities to the bank, ECGC would
  make good a major portion of the bank's
  loss. The bank is required to be co-insurer
  to the extent of the remaining loss
• Any loan given to an exporter for the
  manufacture, processing, purchasing or packing
  of goods meant for export against a firm order or
  Letter of Credit qualifies for Packing Credit
  Guarantee
• Pre-shipment advances given by banks to parties
  who enter into contracts for export of services or
  for construction works abroad to meet
  preliminary expenses in connection with such
  contracts are also eligible for cover under the
  Guarantee
Export    Production         Finance
Guarantee

• The purpose of this Guarantee is to enable
  banks to sanction advances at the pre-
  shipment stage to the full extent of cost of
  production when it exceeds the f.o.b. value
  of the contract/order, the differences
  representing incentive/duty drawback
  receivable
Post-Shipment        Export      Credit
Guarantee

• If the exporter intends to continue the
  credit facilities till the value of shipment is
  realised from the foreign buyer, he has to
  avail of post-shipment credit. The post
  shipment credit guarantee provides
  protection to banks against non-
  realisation of export proceeds and the
  resultant failure of the exporter to repay
  the advances availed.
• Individual Post-Shipment Credit Guarantee can
  also be obtained for finance granted against L/C
  bills, even where an exporter does not hold an
  ECGC Policy, provided that the exporter makes
  shipments solely against Letters of Credit
• The premium rate for this guarantee is 7 paise
  per Rs.100 per month.
• The percentage of loss covered under the
  Individual Post-Shipment guarantee is 75.
Export Finance Guarantee

• This guarantee covers post-shipment
  advances granted by banks to exporters
  against export incentives receivable in the
  form of cash assistance, duty drawback,
  etc.
• The premium rate for this guarantee is 7
  paise per Rs.100 per month and the cover
  is 75 percent
Export Performance Guarantee


• The Export Performance Guarantee, which
  is in the nature of a counter guarantee to
  the bank, is issued to protect the bank
  against losses that it may suffer on account
  of guarantees given by it on behalf of
  exporters. This protection is intended to
  encourage banks to give guarantees on a
  liberal basis for export purposes
• While the premium rate for guarantee
  issued to cover bond relating to exports on
  short-term credit is 0.90% p.a. for 75%
  cover, it is lower for bonds relating to
  exports on deferred credit and projects,
  namely 0.80% p.a. for 75% cover and
  0.95% p.a. for 90% cover.
Export    Finance         (Overseas
Lending) Guarantee

• If a bank financing an overseas project
  provides a foreign currency loan to the
  contractor, it can protect itself from the
  risk of non-payment by the contractor by
  obtaining Export Finance (Overseas
  Lending) Guarantee
• The premium rate is 0.90% per annum for
  75% cover and 1.08% per annum for 90%
  cover. Premium is payable in Indian
  Rupees
Policies & Products
   Special Schemes
Transfer Guarantee

• The confirming bank will suffer a loss if
  the foreign bank fails to reimburse it with
  the amount paid to the exporter. The
  Transfer Guarantee seeks to safeguard
  banks in India against losses arising out of
  such risks
• Loss due to political risks is covered upto
  90% and loss due to commercial risks upto
  75%.
Overseas Investment
Guarantee

• Any investment made by way of equity
  capital or untied loan for the purpose of
  setting up or expansion of overseas
  projects will be eligible for cover under
  investment insurance. The investment
  may be either in cash or in the form of
  export of Indian capital goods and
  services. The cover would be available for
  the original investment together with
  annual dividends or interest receivable
• The cover can be extended for a period of
  15 years from the date of completion of the
  project subject to a maximum of 20 years
  from the date of commencement of
  investment.
Exchange Fluctuation Risk Cover


• The Exchange Fluctuation Risk Cover is
  intended to provide a measure of protection to
  exporters of capital goods, civil engineering
  contractors and consultants who have often to
  receive payments over a period of years for their
  exports, construction works or services. Where
  such payments are to be received in foreign
  currency, they are open to exchange fluctuation
  risk as the forward exchange market does not
  provide cover for such deferred payments.
• Exchange Fluctuation Risk Cover is
  available for payments scheduled over a
  period of 12 months or more, upto a
  maximum of 15 years
Thanks