New factories in Bashkiria may receive federal subsidies for "last mile"

New industries may receive federal subsidies for the "last mile". The Russian government offers the regions a new instrument of federal support in the form of subsidies for the technical connection of factories to resource networks and communications. This is the so-called "last mile".

Director of the Regional Industrial Policy and Project Management Department of the Ministry of Industry and Trade of Russia Vitaly Khotsenko at a board meeting of the Ministry of Industry and Energy of Bashkortostan said that the regional program would consist of two areas of possible federal funding.

"This is subsidizing the costs of enterprises for the equipment purchase and providing concessional loans for investment projects," Khotsenko explained.

General Director of the Federal Center of Competencies Nikolai Solomon, who oversees the implementation of the national project "Labor Productivity", highly appreciated the Process Factory, created at the Ufa Institute for Strategic Development.

"Bashkortostan shows stable growth in attracting enterprises to the national project "Labor Productivity": 102 have already joined, it is planned to invite another 150 enterprises in 2021".

Over the five years of its existence, the Russian Industry Development Fund has financed more than 800 industrial projects in the country with an investment portfolio of 180 billion rubles.

"According to the results of the first half of 2020, Bashkortostan took first place in the country among our partners. We work very closely with colleagues from the republican Fund and hope that we will find new points for mutually beneficial cooperation," Alexey Kuznetsov, First Deputy Director of the Industry Development Fund, said.

He announced a new program of the Russian Industry Development Fund, which would be of interest to timber processors.

It relates to subsidizing the purchase of woodworking equipment at 1.3 percent per annum for seven years up to 2 billion rubles.