Industrial district to be created in Masalli
By Nigar Abbasova
Azerbaijani President Ilham Aliyev signed a decree on the creation of an industrial district in Masalli on June 13.
The main objective of the creation of industrial district in a southern region located in 240 km of capital Baku is to support the entrepreneurial activity in small and medium businesses engaged in industrial sphere, to provide sustainable development of non-oil industry as well as to open new jobs in the sphere.
The district will be managed, developed and regulated by Azerbaijan Investment Company OJSC which is engaged in the promotion of investment activity in the country.
Plants engaged in the manufacture and processing of output in non-oil industry as well as service enterprises are to be created in the district’s territory with the view of rendering support to small and medium-scale entrepreneurship.
Commenting on the issue Economy Minister Shahin Mustafayev said that more than 30 entrepreneurs have already taken an interest in conducting operations in the territory of the industrial district.
The minister mentioned that the construction work on the territory of Masalli industrial district will start soon. The infrastructure work on the territory of Neftchala industrial district will be completed by late June, after which the construction of certain factories and plants will start there, Mustafayev added.
He noted that the construction of the Neftchala industrial district is nearing to an end. The total volume of investments which will be allocated for the Neftchala industrial district in the first stage will exceed 20 million manats ($13.3 million).
“We have chosen seven projects out of 17 presented by businessmen. The projects envisage opening 380 new jobs. Azerbaijan Azeuocar and Iran’s Khodro companies have signed a memorandum on the manufacturing of motor cars and service parts in Neftchala industrial district. We have already chosen seven projects out of 17 presented by businessmen. The projects envisage opening 380 new jobs,” Mustafayev said.
Moreover, Azerbaijan's Azeurocar and Iran's Iran Khodro company have recently signed a memorandum in accordance with which, cars and spare parts will be manufactured in Neftchala industrial district, said the minister, adding that thereby, 60 percent of the spare parts for cars will be manufactured in Azerbaijan.
Further, the minister noted that the Sumgait Chemical Industrial Park will have new residents soon.
Industrial districts are considered to be an important element of modern innovative economy. Azerbaijan takes bids to develop non-oil sector and diversify its economy as well as minimize its oil dependence. Further development of non-oil industry in the county is an issue of top priority for the government of the country.
Industrial parks have been so far created in Sumgait, in the village of Balakhani in Baku and Mingachevir. The country seeks to further boost this sphere and create industrial parks in other cities. The country also provides favorable conditions for other countries to participate in the industrial parks. Works over the provision of infrastructure in the created industrial parks are currently underway.
The government has made certain changes to the legislature in order to ensure further development of the concept of industrial parks and districts. Import of goods by the industrial park residents is exempt of customs duties for a term of five years, while foreign residents of industrial parks are exempt from payments for compulsory social insurance as well as the equipment and technologies used in industrial parks is also exempt from value added tax.
The total number of industrial parks' residents is currently 12, seven being in Sumgait and four in Balakhani and in Garadagh.
The Cabinet of Ministers was instructed to allocate 10 hectares of land for the district, which should be transferred to AIC within the period of the next 2 months.
The Ministry of Economy and Industry was instructed to create conditions for business at that territory including internal and external infrastructure (power, water, gas, heating, sanitation, communications, transport, and firefighting means).
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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