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Over 100 large projects have been implemented for years of industrialization - R. Sklyar on measures of state support for mechanical engineering

Today, at a press conference in the Press Centre of the Government, the First Vice-Minister for Investment and Development of the Republic of Kazakhstan Roman Sklyar told about the measures of state support for enterprises of mechanical engineering.

The VI Forum of Machine Builders of Kazakhstan starts today to discuss topical issues of the development of the machine-building, as well as major systemic issues of the entire manufacturing industry.

As Roman Sklyar noted, the level of the mechanical engineering is an indicator of technological development of the entire national industry.

«As we know, the mechanical engineering is one of the most complex and differentiated branches. That probably explained why the mechanical engineering is the most sensitive to the state regulation measures. Despite of the high level of competition, the mechanical engineering looks with optimism for the future, having tangible  measures of state support», - the First Vice-Minister said.

Thus, this very sector is among priorities within the framework of the State Program of Innovative Industrial Development of the country (SPIID). For the years of the first five-year period of SPIID, the mechanical engineering has become the most dynamically developing industry. The volume of production increased 2.3 times from KZT376 billion in 2010 to KZT870 billion in 2014. The share of domestic mechanical engineering in the volume of the manufacturing industry grew from 9,7 % to 14,8 %. As a whole, more than 100 projects have been implemented for years of industrialization in the machine-building.

According to the Ministry of Investment and Development of the Republic of Kazakhstan, for eight months of 2018, the output of mechanical engineering accounted for more than 638,1 billion, with 13,8 % production growth. The motor industry demonstrates the greatest dynamics of growth among machine building industries. For 8 months this year it was produced more than 19,000 cars worth KZT117,7 billion, which is 1,6 times more than in the same period of the last year.

According to R.Sklyar, the mechanisms of state regulation of this sector developed from the moment of establishment of Kazakhstan as an independent state and this process was dependent not only on the condition of the sector, but also on the country and world economy. In order to develop alternative measures of the state support, amendments and additions have been made to the Entrepreneurial, Tax and Customs Codes.

With a view of stimulation of the mechanical engineering, the state provides with preferential lending both the enterprises themselves and their consumers. Thus, a wide range of services is provided through the Baiterek National Holding, including financing of projects for creating or updating production facilities and subsidizing interest rates for bank loans.

«In this connection, it is important to emphasize as an example the program of preferential car loans and leasing financing, owing to which it was possible to stimulate demand for Kazakhstan products during the economic downturn and to support the domestic car assembly enterprises», - R.Sklyar said.

Besides, there are general support measures, such as export support through Kazakh Invest, as well as other measures that stimulate the development of industrial projects along the Baiterek line. 

R.Sklyar informed that with a view of the further development of mechanical engineering this year, the Ministry for Investment and Development of the Republic of Kazakhstan together with the Union of Machine Builders of the Republic of Kazakhstan developed a draft of the Comprehensive Plan of Mechanical Engineering Development for 2019-2030, it will be discussed with representatives of state agencies, institutes of development and business within the framework of the VI Forum of Machine Builders of Kazakhstan.

In conclusion, the First Vice-Minister for Investment and Development stressed the need for state regulation and the policy of ensuring the availability of business support tools in order to develop this very dynamically developing industry.