30.04.2021

On April 30, a video conference on measures for the development of local industry in the regions was held under the chairmanship of the President of the Republic of Uzbekistan Shavkat Mirziyoyev.

The construction materials, furniture, household goods, clothing and food products are the most popular types of products among the population. It is easy and inexpensive to master production of these goods. In addition, such production stimulates the development of industry in rural areas and, consequently, employment of the population.

For instance, over the past three years, the volume of production of construction materials in the country has increased to 1,5 times. However, the current volume and range of products still do not meet domestic demand. In 2020, the construction materials amounting to nearly $1 billion were imported.

Many houses, factories, enterprises and social facilities are being constructed in our country. This increases the demand for both construction materials and products of related industries.

In this regard, the development of local industry and production increase were considered at the meeting.

«You see that today a dire situation reigns in the world economy. It is difficult for everyone. Therefore, we must capture the available opportunities, achieve results, and fairly bring the people everything that we get by honest labor. The development of local industry is also the responsibility of khokims (governors). If you work wisely, deliberately, you can address the potential inherent here - this is a lot of jobs, the benefit of entrepreneurs, and the well-being of the population», said Shavkat Mirziyoyev.

The need to organize work in this direction in the following chain order «domestic demand research - analysis of imports – finding the resource base - development of new projects» was indicated.

The Ministry of Investments and Foreign Trade was instructed to develop separate programs for the development of local industry, including the sectors of construction materials, textiles, silkworm breeding, pharmaceuticals, electrical engineering, production of leather and footwear, jewellery, porcelain, furniture, as well as the food industry in the context of regions.

The President supported the proposal to specialize 24 districts of the Republic of Karakalpakstan and regions on the production of construction materials. The responsible persons were instructed to organize the new enterprises in these regions, using the existing raw material base and infrastructure of large factories. It was resolved to allocate an additional 400 billion Uzbek soums from the budget to improve infrastructure in these regions and another 100 billion Uzbek soums will be allocated for geological surveys.

In the construction materials industry, more than a thousand new projects for $5 billion have been developed. It is planned to create more than 25 thousand jobs.

The «Uzpromstroybank» proposed to open a credit line for these projects for $300 million, provide entrepreneurs with practical assistance through consulting centers in the branches of this bank. The President gave instructions to allocate an additional $200 million from the state budget through this bank.

It was noted that the guarantees for up to 15 billion Uzbek soums will be issued for the projects for the production of new types of construction and fit-out products. In addition, such manufacturers will be reimbursed by payments on loans in national currency for the exceeding 10% of the Central Bank rate, as well as 50% of the rate on foreign loans.

Along with this, the manufacturers operating in rural industrial zones, as well as mining operators will be able to count on a reduction of the land tax by up to 10 times. 500 deposits of non-metallic minerals resources will be auctioned off and industrial enterprises will be organized on their basis.

It was noted that these opportunities will make it possible to increase the production of construction materials by 40%, expand the range of products and replace imports.

The most effective way is to analyze the structure of imports coming to the district or city and produce these products in the region.

For example, over the past two years, about 6 thousand apartment houses have been built. Almost 30% of the materials used during the construction were imported from abroad. Each of about 100 thousand apartments, which are planned to be built this year, will require the electrical equipment, furniture, kitchen utensils and other household goods for at least 20-30 million Uzbek soums.

Therefore, the responsible persons were instructed to increase the number of projects for the localization of in-demand goods based on the analysis of market demand, to efficiently place such goods in industrial zones in the regions.

Similarly, it is important for the districts focusing on construction materials, to identify districts with an in-depth development of the production of other types of industrial goods and implement the new projects there.

The industrial cooperation is also very important for the development of local industry. In particular, about one thousand contracts for 376 billion Uzbek soums were signed at the industrial fair in Navoiy last week.

It was noted that such events should be held in the Republic of Karakalpakstan and each region.

The quality of the products of the local industry must meet the market requirements. This ensures its competitiveness and sustainability of the enterprise.

In this regard, the «Uzstandard» Agency was tasked with organizing modern laboratories at 24 specialized districts and teach manufacturers the international requirements and quality standards.

As of July 1 this year, the enterprises producing the new types of construction materials will be reimbursed 50% of the costs associated with the implementation of international standards. In addition, the list of construction products subject to mandatory certification will be reduced to 3 times.

The meeting also considered the issue of providing a local industry with trained personnel, since the lack of modern engineers and technologists at the local level hinders the development of the industry.

Therefore, the Ministry of Higher and Secondary Specialized Education was instructed to develop the joint programs for the training of engineers and technologists together with foreign universities, taking into account the needs of the regions.

Deputy Prime Ministers, heads of industries and regions presented information on the issues discussed at the meeting.