Uzbekistan unveils ambitious blueprint for power industry transformation in 2024-2025

Uzbekistan charts a visionary course for its power industry, revealing strategic plans for a transformative overhaul in 2024-2025. The nation aims to modernize and enhance its energy sector, signaling a commitment to sustainable and resilient power infrastructure.

A presidential resolution titled “On additional measures to further increase the productive and export potential of the electrotechnical industry” was passed on January 10 in a significant move to elevate Uzbekistan’s electrotechnical industry, Trend reported. This resolution outlines comprehensive goals for the industry’s development from 2024 to 2025, indicating a strategic commitment to increasing both productivity and global market presence.

A key facet of Uzbekistan’s ambitious plan is a substantial increase in the export of electrical products. The nation aims to boost exports to $1.5 billion within the current year and escalate this figure to $2 billion by 2025, reflecting a robust push to position itself as a competitive player in the global electrotechnical market.

To bolster production capabilities, the resolution sets forth plans to intensify the processing of copper raw materials. The goal is to process 140,000 tons of copper in 2024, increasing further to 160,000 tons in 2025. These efforts are anticipated to contribute to a significant rise in production volume, reaching 30.8 trillion soums ($2.4 billion) in 2024 and advancing to 38 trillion soums ($3 billion) in 2025.

Recognizing the need for substantial financial backing to implement these ambitious projects, the resolution outlines a credit line of $100 million to be extended to commercial banks. This credit, spanning a decade with a three-year grace period, comes at an annual interest rate of 5 per cent from 2024 to 2026. The banks, in turn, are mandated to provide loans to business entities at a 7 per cent annual interest rate for ten years, also with a three-year grace period.

Moreover, tax incentives play a pivotal role in incentivizing enterprises within the electrotechnical industry. Businesses whose revenues from the sale of electrical products constitute at least 80 per cent of their total revenues are eligible for reduced rates of income tax and property tax, up to 50 per cent. These incentives are slated to remain in effect until January 1, 2027, offering long-term benefits to qualifying enterprises.

In a bid to foster innovation and the development of advanced electrical products, Uzbekistan is establishing the Eltech Industrial Technopark. This initiative builds upon the foundation of the OhangaronTech Industrial Technopark and is poised to be a catalyst for the creation of cutting-edge high-tech electrical products and their components.

Uzbekistan’s comprehensive approach, encompassing export targets, production enhancements, financial support mechanisms, tax incentives, and technological innovation, positions the nation on a trajectory of sustained growth and competitiveness in the global electrotechnical landscape. This strategic roadmap underscores Uzbekistan’s commitment to fostering a robust and forward-looking electrotechnical industry.