The main task in the electrical engineering industry is to ensure quality and reduce costs

On September 5, a videoconference was held under the chairmanship of President Shavkat Mirziyoyev on issues of increasing production, export and investment in the electrical engineering industry, the press service of the head of our state reports.

Our country has great potential in this area. Over the past seven years, 1 billion dollars have been invested in the industry. As a result, 762 enterprises were commissioned, production of 45 types of new products was launched. During this, budget revenues from enterprises in the industry increased 8 times. Production volume increased 1.8 times.

The geography of exports has doubled over the past three years and covered 62 countries. Of the 200 types of products manufactured, 195 are exported. In general, electrical equipment exports reached 1 billion dollars, and in this indicator, the industry became second after textiles.

At the same time, there are problems associated with interruptions in production and logistics chains, working capital and cost price. All countries have strengthened the protection of their domestic market. 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 industry enterprises and expanding the value chain.

At a meeting with the participation of responsible industry officials and entrepreneurs, opportunities in this area were analyzed.

A low level of processing and inter-industry cooperation at enterprises was noted. For example, only 4 enterprises produce cables that are in demand in the automotive industry. If composite insulation of copper pipes is established, their cost will increase.

In this regard, it was determined that from now on, technology parks in the electrical engineering industry will develop on the basis of industrial cooperation with enterprises in related areas. For this purpose, up to 10 hectares of space will be allocated in the technology parks of Akhangaran, Fergana, Karshi and Urgench for enterprises in related industries, such as the processing of composite materials, metal and plastic processing, mold production, and packaging. For specific projects in this area, ready-made buildings will be constructed, which will be provided to entrepreneurs on industrial mortgage terms. These enterprises will be granted the same benefits as electrical engineering enterprises on property tax and income tax of up to 50 percent.

In recent years, the household appliances sector has been developing well. However, it was noted at the meeting that we should not limit ourselves to this sector alone. Today, the demand for electrical products in the energy, construction, water management, and automotive industries is growing every day.

For example, in the energy sector, projects worth $36 billion are being implemented to produce 27 gigawatts of electricity. There are big plans to replace pumps with modern ones, and install meters in drinking water supply networks.

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

Based on this, it was instructed to increase the share of domestic products in state investment programs and major projects. To do this, the relevant ministries and industries must communicate their requirements to local enterprises, help improve the quality of products and bring them into line with standards.

It was noted that this year in the electrical engineering industry there is an opportunity to increase the production volume to 40 trillion soums.

The issue of value added tax was raised. Goods imported from abroad for projects implemented through external borrowing are exempt from it. However, domestic enterprises participating in such projects pay value added tax. As a result, they cannot compete in price with imported goods.

It was determined that from now on, domestic manufacturers will be refunded the value added tax for goods supplied to projects involving international financial organizations. Thanks to this, an additional market of 250 million dollars will appear for our electrical engineering enterprises.

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

When discussing export issues, it was noted that it is possible to organize large-unit assembly in other countries and supply them with components and semi-finished products without additional fees.

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

It is important that the ‘‘Uzeltexsanoat’’ Association is not limited to large enterprises, but closely cooperates with all entrepreneurs in the industry. In this regard, a decision was made to radically change its activities.

In particular, the association will now identify products in demand in the domestic and foreign markets, develop projects for them and transfer them to entrepreneurs. It will promote the implementation of standards at enterprises in accordance with international requirements and the receipt of certificates. The association will determine the needs in other industries and transfer their orders to electrical engineering enterprises. Place orders in universities and technical schools for the training of engineers-technologists and mid-level personnel, and jointly develop training programs. The association will send promising specialists from local enterprises for internships in leading foreign companies.

New members of the association will not be charged fees for 2 years, and enterprises with a turnover of less than 10 billion soums will not be charged fees at all. Testing of their products in the ‘‘Eltex Lab’’ laboratory will be free.

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

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