The next step in the development and support to Developing New Industries in Uzbekistan was the government’s approval of a program on the major expansion of localization of produced machinery, engineering equipment and units for small businesses, mini-technologies for processing agricultural and mineral commodities in 2009-2012. This program was developed jointly with the Ministry of Economy, Ministry of Foreign Economic Relations, Investments and Trade, Ministry of Finance, as well as business associations of the republic and national enterprises.

The program stipulates the implementation of over 530 projects for the time span of four years. It also covers expanding the localization of production in heavy industry, agriculture, chemical industry, fuel and energy complex, oil and gas sector and mining, aircraft, mechanical engineering, electrical engineering and many other areas. The program also provides for the development of localization of goods for public services, transportation, capital building and construction industry in general. For example, according to forecasts for 2009, one of the major enterprises of the capital, Tashkent Tractor Plant (TTZ), will increase the localization level of twin-clutches for tractor gearboxes up to 65%, and toward late 2012 the share will reach 80%. A private company, Metingkom, will implement the localization of metal components and wear parts for agricultural machinery to 35% this year, and to 45% in 2012.

“These additional measures on raising local production through development of new types of goods will contribute to further development of our company,” said manager of development department at TTZ, Marat Jumaev. “Funds released fr om the substitution of imported parts for our tractors will enable us to upgrade production, increase its capacities, create more jobs, lift up export potential of the plant.”

Besides, all enterprises involved in the implementation of program projects will be provided with a number of tax privileges and preferences. In particular, they are exempt fr om customs duties for imported technological equipment and spare parts, income tax, single tax, property tax, etc.

For the successful sale of localized goods, there will be regular exhibitions organized in Uzbekistan, where everyone will be able to review and purchase necessary equipment and mini-technologies.

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