05.09.2024

On September 5, President Shavkat Mirziyoyev chaired a video conference on increasing production, exports and investments in the electrical industry.

There is a lot of potential in our country. Over the last seven years, US $1 billion has been invested in this sector. As a result, 762 enterprises were put into operation and 45 new products were produced. As a result, the budget from enterprises in the industry increased by 8 times. Production increased by 1,8 times.

The export geography has doubled in the last three years and covers 62 countries. Of 200 products, 195 are exported. Overall, exports of electrical engineering reached US $1 billion and this sector was the second after textile.

There are, however, problems related to disruptions in production and logistics chains, turnover and cost. All countries have strengthened the protection of their domestic markets. It is becoming increasingly difficult to enter new markets and maintain existing ones.

- In such conditions, our only way is to increase the competitiveness of our products by ensuring quality and reducing costs, - said Shavkat Mirziyoyev. - This can be achieved by uniting enterprises of the industry and expanding the value chain.

Opportunities in this direction were analysed at a meeting with the participation of industry and business leaders.

There is a low level of recycling and cross-industry cooperation in enterprises. For example, only 4 companies produce cables that are in demand in the automotive industry. If a composite insulation of copper pipes is established, their cost will increase.

In this regard, it is determined that from now on the technology parks in the electrical industry will be developed based on industrial cooperation with enterprises of related directions. To this end, the Ahangaran, Fergana, Karshi and Urgench technoparks will allocate up to 10 hectares of space for enterprises in related industries such as composite materials processing, metal and plastic processing, mould production and packaging. Ready-made buildings will be built for specific projects in this area, which will be provided to entrepreneurs in terms of industrial mortgages. These enterprises will be granted the same property tax and profit tax benefits as electrical enterprises up to 50 percent.

The home appliances sector has developed well in recent years. However, we should not limit ourselves to this area alone, as noted at the meeting. Today, the demand for electrical products in power engineering, construction, water management, and automotive industry is growing every day.

For example, energy projects are implemented for US $36 billion to produce 27 gigawatts of electricity. There are big plans to replace the pumps with modern, installation of meters in drinking water supply networks.

In our country, apartment buildings of 100 thousand apartments and non-residential buildings of 13 million square meters are built annually. They also need cables, transformers, heating and cooling systems, pumps, elevators, and surveillance equipment.

Accordingly, it is mandated to increase the share of domestic products in public investment programs and large projects. This requires relevant ministries and industries to communicate their requirements to local enterprises, help improve the quality of products and bring them up to standards.

It was noted that this year the electrical industry has the potential to increase production to 40 trillion Uzbek soums.

The issue of value-added tax was raised. It excludes goods imported from abroad for projects implemented through external borrowing. However, domestic enterprises involved in such projects pay value-added tax. As a result, they cannot compete with imported goods in terms of price.

It was determined that domestic producers will henceforth be reimbursed for value-added tax on goods supplied to projects involving international financial organizations. This will add US $250 million to our electrical engineering business.

Addressing the representatives of the industry, the Head of state stressed the need to work on quality and competitiveness, as well as obtaining international certificates.

In the export discussions, it was noted that a large-scale assembly could be arranged in other countries and components and semi-finished products could be supplied to them without additional fees.

In particular, there is the potential to transform Uzbekistan into a regional electrical engineering hub, supplying technology, qualified specialists and components to neighboring markets. To this end, instructions were given on the production and promotion of new products under national brands.

It is important that the association “Uzeltexsanoat” is not limited to large enterprises but closely cooperates with all entrepreneurs in the industry. It was therefore decided to change its activities.

In particular, the association will now identify products in demand on domestic and foreign markets, develop projects for them and transfer them to entrepreneurs. It will facilitate the implementation of standards in enterprises according to international requirements and certification. The Association will identify needs in other industries and transfer their orders to electrical enterprises. It will place orders in universities and technical schools for the training of technical engineers and middle-level personnel, as well as jointly develop educational programs. The association will send prospective specialists to local enterprises for internships in advanced foreign companies.

The association’s new members will not be charged for 2 years, and enterprises with a turnover of less than 10 billion Uzbek soums will not be charged at all. Testing their products in the “Eltex Lab” laboratory will be free.

At the meeting, industry leaders and khokims presented information about plans to launch 85 projects worth US $500 million this year.

The Head of state then held an open dialogue with entrepreneurs in the industry. Based on their problems and proposals, instructions were given to work out issues of increasing the volume of revolving funds for export, expanding the system of leasing industrial electrical equipment, financial support for research and development, giving priority to domestic products in public procurement, restricting trade in low-quality and counterfeit products and others.