Government allocates $30 million to support factoring for local electrical equipment producers

As it was previously reported, Shavkat Mirziyoyev held a meeting on the development of the electrical engineering industry.

At the meeting, the president highlighted the growing demand for electrical equipment across various sectors of the economy, including energy, construction, and others. For instance, the energy sector plans to launch 27 GW of new capacity, with a total value of $36 billion.

By 2027, the goal is to install over 4,000 water meters at major facilities and main water pipelines. Additionally, 243 gas distribution points need to be updated. The automotive industry imports electrical equipment worth more than $200 million annually.

The president emphasized the need to abandon the practice where industries import equipment under the pretext that local products do not meet their requirements.

In major projects and programs involving the state, it has been instructed to increase the proportion of domestic electrical equipment. The president noted that in energy-related PPP agreements, at least 70% of the wires and 25% of the materials used should be locally sourced.

The Association “Uzeltechsanoat” and regional administrations will place orders with local enterprises and will provide support in product standardization and certification.

There is also a high demand for factoring services among electrical engineering enterprises. It has been mandated to allocate at least $30 million for these needs by the end of the year.

For projects involving international financial institutions, VAT on electrical equipment purchased from local producers will be refunded. This measure is expected to enhance their competitiveness, as noted by the president.