Ten New Facilities Worth about 13 Billion Rubles to Be Constructed in Ulyanovsk Region in 2020
At the meeting on financial and economic issues, which took place on 28 February, Governor Sergey Morozov listed to the report by Sergey Vasin (Head of Ulyanovsk Region Development Corporation) regarding implementation of the Plan to Promote Economic Growth in the Ulyanovsk Region.
Sergey Morozov said, “One of the tasks set by President Vladimir Putin in his Address to the Federal Assembly requires to improve the structure and quality of our economy. This includes creation of new industries and jobs with competitive wages. We aim to meet this indicator by creating a favorable investment climate in the region and establishing industrial development sites.”
This year ten companies will start construction with the total investment of 12.9 billion rubles. Bridgstone will build a logistics center and Federal State Unitary Enterprise "All-Russian Scientific Research Institute of Aviation Materials" (VIAM) is going to establish a laboratory and production facility to manufacture polymer composite materials and coatings. There will also be a plant for production of corrugated cardboard packaging, a pharmaceutical facility, and a cake mix factory. These projects alone will create about five thousand new jobs.
Twelve projects worth 6.6 billion rubles will be completed by the end of the year. These include a facility for electrical goods production in Dimitrovgrad Park "Master", a wholesale distribution center with a slaughter house, the first plant for production of dry building mixes in Sengileyevsky District, one more project of Mars, Incorporated, and a number of new projects in the special economic zone.
According to Sergey Vasin, Head of the Corporation, the region continues to develop infrastructure of industrial parks, Port Special Economic Zones (PSEZ) and development zones.
The head said, “We continue to provide the industrial park "Zavolzhye" with infrastructure facilities. To encourage investors to expand their production facilities and to reduce the cost of electricity for them, we are in need of our own gas-generating facilities for residents. We are planning to build a gas pipeline in Vostochny Park for small and medium-sized enterprises in "Zavolzhye". We are designing new buildings for quick production launch and renting. This year we will start construction of production facilities with the total area of more than 27 thousand square meters in SEZ "Ulyanovsk". In addition, growth points will be created in municipalities according to the task set by the head of the region in his investment message. We begin to establish industrial sites in the Novoulyanovsk and Inza; area planning will be designed in the near future. We expect to start construction of the production facility in Inza this year. We will also continue developing the site in Dimitrovgrad Park "Master". We want to use financing from the Fund for Development of Monotowns to repair and upgrade utilities, which meets the needs of industrial park "DAAZ".”
The region is improving the regulatory framework to support investors. In the first quarter of 2020, amendments were adopted to the law "On Profit Tax Rates for Organizations Supplied to Ulyanovsk Region Budget" for taxpayers who participate in Regional Investment Projects (RIP). It is planned to reduce this rate to 10% as far as regional budget is concerned and to 0% for the federal budget. The next step is to provide RIP participants with property tax benefits.
Regional laws have also been changed to preserve favorable conditions and to protect investors attracted to the region from negative consequences due to changes in the federal legislation. For example, it is now possible to receive subsidy for some lost benefits because of the income tax.
“In addition, we are going to introduce a legislative initiative to simplify the visa regime for foreign investors during negotiations and implementation of their projects in the Ulyanovsk region. The Government of the region should receive the authority to apply for long-term business visas for foreign citizens who confirm their plans to provide direct investments to the regional economy,” - said the Head of Ulyanovsk Region Development Corporation.