The state will help textile enterprises exporting at least 80 percent of finished goods to repay loans
Potential of textile, garment and knitting industry is revealed in the country from year to year. In particular, attention at places is paid to ensuring high and sustainable growth rates, attracting and developing foreign direct investment, manufacturing and exporting competitive products.
A number of significant activities are carried out in this regard in Samarkand region. Activities of such large textile, garment and knitwear enterprises as LLC “8 March”, LLC “BOFANDA”, LLC “Daka Tex” and LLC “Daka” are expanding, new enterprises are being established. As a result, the export volumes of finished knitted goods are growing from year to year. Cotton clusters are formed, this year the responsibility for development and implementation of plans for cotton production is assigned to clusters.
A new stage in deepening these reforms was opened by the resolution of the President “On measures for further deepening reforms and expanding the export potential of textile, garment and knitwear industry” of February 12, 2019.
According to the document, from April 1, 2019, expenses related to the payment of interest on loans from commercial banks allocated to garment and knitwear enterprises in 2019–2021, exporting at least 80 percent of finished goods, are covered by the State Fund for Supporting Business Development under the Cabinet of Ministers of the Republic of Uzbekistan.
Interest will be paid in the following order:
- in the amount of 25 percent of the interest rate established by a commercial bank on loans issued in national currency for replenishment of working capital (for the purchase of yarn, linen, fabrics and materials for production of finished textile products), but not more than 5 percentage points;
- in the amount of 50 percent of the interest rate established by a commercial bank on loans issued in foreign currency for modernization of production (purchase of buildings and equipment);
The fact that the Ministry of Higher and Secondary Special Education of the Republic of Uzbekistan is charged with organizing, starting from 2019/2020 academic year, joint educational programs of leading foreign higher education institutions at Tashkent Institute of Textile and Light Industry, attracts attention.
Measures will be taken on establishing, by the end of 2019, in the territory of the Republic of Uzbekistan a production and training cluster with participation of foreign companies, providing for implementation of the educational process directly at production facilities. The order will be established, according to which the personnel of Tashkent Institute of Textile and Light Industry concludes an agreement on the obligation of the graduate to work at the customer’s enterprise if the customer pays the basic contract amount of at least 50 percent in the second year, at least 75 percent in the third year and 100 percent in the fourth year.
This will open up new opportunities for youth who have decided to link their future activities with textile, garment and knitwear industry, and enterprises of the sphere to form a personnel base for their needs.
Head of Department for
Working with Business
Structures and Farmers of
Kengash of UzLiDeP