RELIEF Component II Is Extended to March 2027: What Indian Exporters Need to Do Now
The Department of Commerce has extended Component II of RELIEF until March 31, 2027. The extension was notified under Notification No. 37/2026-27. The earlier deadline was 30 September 2026, set by a June notification, so this extension carries support through the rest of FY2026-27.
If you ship to the Gulf or wider West Asia and don't yet hold an ECGC policy, you now have about five more months to act. You can lock in enhanced cover and a protected premium.
Why RELIEF exists
RELIEF was approved on March 19, 2026 as a time-sensitive intervention under the Export Promotion Mission (EPM). The cause was disruption around the Gulf shipping corridor. Rerouted vessels, longer transit times, congestion at transshipment hubs and emergency conflict surcharges pushed up freight and insurance costs.
The government approved a financial outlay of Rs 497 crore. ECGC is the nodal implementing agency for risk coverage and reimbursements.
The three components, and which one is still open
Component | What it covers | Status |
I | Up to 100% additional risk cover for exporters already insured by ECGC, for shipments between 14 Feb and 15 Mar 2026 | Closed |
II | Government-backed ECGC cover of up to 95% for upcoming shipments | Open, extended to 31 Mar 2027 |
III | Up to 50% reimbursement of elevated freight and insurance costs for uninsured MSME exporters, capped at INR 5 million per exporter | Application window closed |
ECGC's page shows the budget split as Rs 56 crore for Component I, Rs 159 crore for Component II and Rs 282 crore for Component III. Component II is therefore the main forward-looking tool for exporters who are still shipping.
How Component II works
1. Higher cover. Component II provides compensation of up to 95% of eligible losses from war-related and associated political risks, subject to policy conditions and verification.
2. Premium protection. Premiums payable by eligible exporters are protected against increases beyond pre-disruption levels during the eligible period. Insurers normally reprice sharply in a conflict zone, so this matters. You get cover without paying a war-risk loading on the premium.
3. Policy types. The benefit applies to Standalone Policies and Whole Turnover Policies obtained on or after March 16, 2026.
4. Cargo. Eligible categories are Full Container Load (FCL), Less than Container Load (LCL) and reefer containers. Energy exports are excluded.
5. Destinations. The intervention covers consignments to the UAE, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain, Israel, Iraq, Iran, Yemen, Egypt and Jordan. Egypt and Jordan were added on April 17, 2026, for delivery or transshipment. Shipments via these countries can qualify too, not only those destined for them.
What exporters often miss
It is not automatic. You must hold a qualifying ECGC policy. RELIEF improves the terms of that policy and does not replace it.
Check the policy date. The benefit applies to policies obtained on or after 16 March 2026. If your policy is older, ask ECGC how it applies to you.
Check cargo and route before shipping. Verify that your policy, cargo category, destination and shipment date meet the eligibility conditions before filing claims.
Energy shipments are out, even on eligible routes.
Reimports are excluded. Back-to-town and reimport cases are excluded from government support, though normal ECGC policy cover still applies.
The scheme is time-bound. Eligibility runs to 31 March 2027, so don't plan on it continuing past that date.
How to register and claim
Register on the ECGC portal at www.ecgcltd.in to generate a User ID and password.
Keep your IEC, PAN, UDYAM registration and bank account details ready for KYC and Exporter Code creation.
Obtain a Standalone or Whole Turnover Policy.
Submit claims and supporting documents through the ECGC customer portal.
Use the video tutorials on ECGC's YouTube channel (@ecgcltd7016) for user ID creation, registration and claim submission.
Documentation discipline decides how fast a claim moves. Keep bills of lading, invoices, shipping bills, buyer details and payment records organized per consignment.
Why this matters beyond insurance
The extension signals that the disruption is not seen as temporary. The Centre extended the scheme by six months because of continuing disruption on West Asian maritime routes. Exporters should plan for three things:
Buyer risk. A cancelled order or a delayed payment from a Gulf buyer is now a balance-sheet issue, not an operations one.
Cash flow. Higher freight, insurance and demurrage costs tie up working capital for longer.
Documentation load. Policy details, shipment records and claim files must stay in sync across ERP, finance and logistics.
Action checklist for this week
List your West Asia shipments planned through March 2027.
Check whether each destination or transshipment country is on the eligible list.
Confirm your ECGC policy type and issue date.
Complete portal registration and KYC.
Set up a per-shipment document folder or ERP workflow for claims.
Disclaimer: This post summarizes public government notifications and ECGC material. Confirm eligibility, notified ceilings and claim procedures with ECGC before relying on them.
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