Around Br500 billion will be invested in the modernization of the Orsha Flax Mill in 2011-2013

January 10, Minsk /BELTA/. About Br500 billion will be invested in the modernization and technological re-equipment of RUPTP "Orsha Linen Mill" in 2011-2013 in accordance with Decree No. 663, the "Bellesprom" concern informed BELTA correspondent. The enterprise will be provided with financial assistance from the state budget in the amount of Br145 billion over three years, which will be directed towards design, survey, construction, and installation work. For the purchase of equipment, it is planned to attract external financing in the amount of 85 million euros in the form of a state loan (credit) with a repayment period of at least 15 years. At the same time, the reimbursement of interest on the loan (credit) will be carried out at the expense of the republican budget. The payback period of investments under the financing scheme adopted in the business plan, from the moment of reaching design capacity, is 6 years. It is also planned to develop a project for the construction of a new factory with a full technological cycle of flax fiber processing, provided that there are guaranteed supplies of domestic long flax fiber in the amount of at least 3.5 thousand tons with an average grade of 14.5 from 2013. In addition, Orsha Linen Mill is exempted from value-added tax on imported equipment. In order to financially improve the linen mill, the repayment periods for overdue budget loans will be extended. The concern noted that the condition for providing state support to Orsha Linen Mill is the fulfillment by the enterprise annually during the period of application of the decree's norms of key target indicators for the growth rate of industrial production volume and the profitability level of sold products. -0-