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Localization of production and industrial cooperation to be deepened and accelerated
On September 17, 2019, a meeting on the issues of accelerated development of industry, raising the level and expanding the scale of localization was held under the chairmanship of the President of the Republic of Uzbekistan Shavkat Mirziyoyev.
As a result of an active investment policy, liberalization of foreign trade and foreign exchange operations, healthy competition and a real market economy are being formed in the country.
Issues of development of domestic industry based on modern requirements, increasing competitiveness and expanding the range of products were discussed at the meeting.
“We must implement an industrial policy aimed at production of export-oriented and import-substituting products, the formation of high added value. Deepening the localization and accelerated expansion of its scale, effectively using the available raw materials and opportunities, should be the basis of this industrial policy”, the Head of the state noted.
The President’s resolution of August 24 of the current year determined the introduction of a new system of production localization and acceleration of cooperative ties in industries. At the meeting, instructions were given on ensuring the effective functioning of this system. The most important areas for expanding cooperation have been indicated.
During the consideration of the localization of production in industries and large enterprises, as well as expansion of industrial cooperation, the fact that over the past period of this year, as part of new projects, production of localized products worth only 1 billion USD, was found unsatisfactory. JSC Uzmakhsusmontajqurilish, Uzyogmoysanoat Association, JSC Uzbekiston Milliy Elektr Tarmoqlari and other enterprises were criticized for their poor work in this direction.
The ongoing work on development of new types of finished products, components and raw materials have been analyzed in accordance with the resolution of the President of the Republic of Uzbekistan “On measures for further development of industrial cooperation and expansion of production of demanded products” of May 1 this year.
The Cabinet of Ministers, the Ministry of Economy and Industry were instructed to take practical measures for development of industrial cooperation, launching the electronic cooperation portal as soon as possible, and expanding the scope of electronic conclusion of contracts for the delivery of industrial products.
Issues of expansion and deepening of production localization in the regions were thoroughly discussed.
This year a double increase in regional imports compared with industries has been recorded. This clearly indicates the presence in the regions of great demand for a significant increase in production.
For example, recently, working groups composed of representatives of the sphere visited Angren, Navoi, Namangan and Chirchik, where they formed 38, 13, 29, and 18 new localization projects, respectively.
The need was noted for developing localization programs in the same order for each region.
Opportunity in this regard is provided by small industrial zones, which have land plots, buildings and finished infrastructure. But in the country’s 156 small industrial zones, only 13 percent of projects focus on production of localized products. No small industrial zones were created in 80 cities and districts.
Responsible persons were given instructions on increasing the number of projects for production of import-substituting products in small industrial zones, and organizing such zones in those 80 cities and districts where they are absent.
The need was noted for efficient operation of imported technological equipment. Many cases of downtime of equipment imported from abroad for foreign currency have been identified. The reason for this was the obstacles faced by entrepreneurs in obtaining land, building permits, connecting to communications and solving other issues.
The Head of the state gave instructions on solving problems of entrepreneurs who purchased equipment, assisting in the launch of the planned enterprises. The Business Ombudsman was recommended to coordinate the process of commissioning of imported equipment at the district, city, regional and republican levels.
Particular attention has been paid to the timely implementation of large projects designed to become flagships in localization of production.
In particular, projects for the annual production of 100 thousand tons of polyvinyl chloride on the basis of Navoiazot, 500 thousand tons of metal at Tashkent Metallurgical Plant, 744 thousand tons of diesel fuel in Shurtan Gas Chemical Complex, a cluster of household appliances at Tashkent Mechanical Plant, glass at Quartz, Sirdaryo Glass and Zarafshon Oyna enterprises will make it possible to produce localized products worth 2.5 billion USD per year. In addition, other industries will be organized around them and new jobs will be created.
The Prime Minister and the Chairman of the Accounts Chamber were instructed to ensure the timely commissioning of these major projects.
When considering the issue of localization support, it was noted that it is necessary to effectively use the system of guaranteeing and private compensation of interest on loans from the State Fund for Supporting the Development of Entrepreneurship under the Cabinet of Ministers.
The possibility of assistance to such projects in the form of payment of customs payments by installments up to 120 days, simplified certification and standardization of finished products of enterprises localizing production has been also indicated.
Priority tasks for expanding and stimulating the participation of local enterprises in public procurement, improving the efficiency of tariff management of foreign trade have been identified.
The reports of leaders of sectors and regions on issues discussed at the meeting have been heard.