Tatarstan Investment Development Agency about lowering investment threshold to 15m: ‘Otherwise, the attractiveness of industrial parks will be lost’
There was considered a standard for priority socio-economic development area (PSEDA) residents who must invest from 2.5 to 20 million rubles when obtaining the status
Republic authorities eliminated the inequality in preferences between inactive industrial parks and blossoming PSEDAs — there are five in total. On 5 July, The Tatarstan State Council’s Committee for Environment, Nature Use, Agro-Industrial and Food Policy approved a legislative initiative lowering the investment threshold from 350 million to 15 million rubles for those who wants to start a business in municipal industrial parks. Instead, a resident will get a land without auction, not as property but for rent. Zelenodolsk seems to be at an advantage.
Industrial parks separated from Kazan and Naberezhnye Chelny
Vice head of Tatarstan Investment Development Agency Igor Sapunov whose agency presents final investment projects to the Tatarstan Investment Council for approval presented the bill on eliminating barriers to enter municipal industrial parks. Though final proposals for simplifying the access to industrial parks came from all the sides: from supervisors of industrial parks in municipalities, management companies and residents themselves. Their essence boiled down to the fact that small and mid-sized businesses industrial parks were created for, in fact, don’t have a multimillion capital of 350 million rubles, as republican legislation demands. While big investors choose either Kazan or “heaven-like terms” in the PSEDA in Naberezhnye Chelny and Nizhnekamsk. As a result, the Tatarstan government agreed to remove the strict requirements for industrial park residents offering to fix the minimum investment of 15 million rubles.
Vice head of Tatarstan Investment Development Agency Igor Sapunov said that it was offered to differentiate the investment threshold depending on the location of the industrial park. So it doesn’t change for residents of urban districts (Editor’s note: Kazan, Naberezhnye Chelny), for the other industrial parks in municipalities it is cut to 15 million rubles
“Obviously, with the equal amount of investments, those located in urban districts are more attractive. Due to this the attractiveness of industrial parks in municipal districts is lost,” he explained. “Due to this, we offer to lower the requirement for investments to 15 million rubles.”
Why there was fixed a threshold of 15 million rubles
Where does this sum come from? According to Igor Sapunov, the standard for PSEDA residents was considered, they must invest from 2.5 to 20 million rubles when obtaining this status. These are those capitals small and micro-businesses operate, he specified.
“So our bill stimulates the development of investment projects on the territory of municipalities and helps small entrepreneurship to start a business in industrial parks,” he concluded.
As a result, entrepreneurs can get land parcels (the area not specified) without auction, not as property but for rent, clarified deputy Azat Khamayev. However, the rent term wasn’t specified.
Another change is linked with the exclusion of the requirement for the number of jobs. Now a resident must provide as few as 50 jobs at a municipal park and no less than 100 jobs in an urban district. Now this norm is eliminated. As Igor Sapunov explained, it is impossible to monitor and control its execution.
Deputies of the Committee for Environment, Nature Use, Agro-Industrial and Food Policy voted for the project unanimously and recommended adopting it at three hearings at the next session. The changes that are offered are going to be added to an appendix to the Tatarstan Land Code that was adopted this February for investment projects.
Big Tura 2.0 industrial park will likely turn out to be at an advantage of the novelties, it is breaking records in the number of applications submitted by residents, heads of some municipalities think. For instance, land in Mamadysh is sold as property for 2,000 rubles but anyway the park isn’t filled as actively as Tura in Zelenodolsk.