The Decision, issued on August 6, 2004, approves the scheme for development of mechanical-engineering industry till 2010 in service of agricultural and rural industrialization and modernization.
The scheme contains development viewpoints, objectives, orientations as well as solutions and policies.
Some major solutions include the consolidation of State corporations, promotion of the model of parent company- subsidiary company and acceleration of the equitization of State enterprises specialized in agricultural mechanical engineering.
Different investment capital sources shall be mobilized for scheme implemen-tation, according to the Decision, including source of foreign investment capital, first of all for the manufacture of machine, equipment and complex technological chains.
Under the scheme, the Development Assistance Fund shall provide develop-ment investment credits for projects entitled to domestic investment promotion and soft loans for such key branches as mechanical engineering and afforestation.
Foreign direct investment projects on mechanical engineering in service of agriculture shall enjoy special treatment, including the reduction or exemption of import tax on mechanical-engineering raw materials and supplies; reduction or exemption of enterprise income tax; reduction of land use levy and exemption of land rents for mechanical-engineering projects in service of agriculture and rural areas.
The Government is requested to provide financial support for the transfer and application of new technologies in service of manufacturing of mechanical-engineering equipment for agriculture as well as agricultural and forestry product processing.-