The Ministry of Industry demands an informal approach to modernization projects from enterprises
The Ministry of Industry demands an informal approach to modernization projects from enterprises. This was announced today by the Minister of Industry Dmitry Katerinich, who participated in the meeting of the Vitebsk Regional Executive Committee, reports BELTA correspondent.
According to the minister, the modernization projects that enterprise managers presented to the Ministry of Industry, on the one hand, meet the established requirements: "All directors have developed programs that include revenue, gross value added, and have received the necessary approvals. Formally, everything is in compliance." However, the investment volumes in these projects are projected to grow by 10-15% compared to the 2012 level, which, in Dmitry Katerinich's opinion, is insufficient. "This indicates that serious modernization will not be carried out. There is an attempt to reduce everything to a campaign. There are no real projects. Enterprises cannot offer a global high-quality product. It is impossible to reach world standards with low funding for modernization," he stated.
In turn, the government sees the problems that enterprises face during modernization. The main ones are the lack of own funds for renewal, as well as high interest rates on loans. However, it is realistic to receive state support for project implementation – a number of government decrees aimed at this, specifying the conditions for such support, the minister recalled.
According to the Chairman of the Vitebsk Regional Executive Committee Alexander Kosinets, credit resources for the modernization of industrial enterprises, primarily in the machine tool and machine-building industries, should be made cheaper or financed from the development fund. The governor sees another way in attracting foreign investment and creating joint ventures.
The Minister of Industry also drew attention to the fact that often newly installed equipment is not used to its full capacity. "Enterprises operate in one or two shifts, Saturday and Sunday are days off. Modern equipment cannot be operated in one shift. If it is not utilized, it does not yield returns, no profit is made, and therefore, there are no funds for further rearmament," he said. Production performance indicators are as important as qualitative ones. "No production volumes – no revenue, no salaries, no money for production development. Some enterprises need to increase volumes by 3-4 times. There are markets for the products," believes Dmitry Katerinich. In this regard, the Ministry of Industry intends to revise contracts with the management, which will specify the conditions for fulfilling, among other things, production volume targets.
In the Vitebsk region, 1156 organizations operate in industry, employing over 123 thousand people. Out of the total number of industrial enterprises, 1137 organizations are implementing modernization plans and measures for effective development until 2015. Approximately Br15 trillion is planned to be allocated for the implementation of production renewal plans during 2013-2015.