Brief Information about Andijan

Andijan Region is located in the eastern part of the Fergana Valley in far eastern Uzbekistan. It borders with Kyrgyzstan, Fergana Region and Namangan Region. It covers an area of 4,200 km 2 . The population is estimated to be more than 3.100 thousand thus making Andijan Region the most densely populated region of Uzbekistan.

The name Andijan has originated from the Persian word of Andakan. The traditional etymology connects the name with the Turk, ethnonym Gandhi (Gandhi Turks), and known from pre-Islamic period.

Andijan Region is divided into 14 administrative districts. The capital is the city of  Andijan . The climate is a typically continental climate with extreme differences between winter and summer temperatures.

Natural resources include deposits of petroleum, natural gas, ozokerite and limestone. As with other regions of Uzbekistan, it is famous for its very sweet melons and watermelons, but cultivation of crops can be accomplished exclusively on irrigated lands. Main agriculture includes cotton, cereal, viticulture, cattle raising and vegetable gardening.

Industry includes metal processing, chemical industry, light industry, food processing. The first automobile assembly plant in Central Asia was opened in Asaka in Andijan Region by the Uzbek-Korean joint venture, ”GM Uzbekistan”, which produces Nexia, Gentra, Tracker, Malibu and Captiva cars and the Damas minibus.

In light of the competitive economic growth around the world, Andijan region has already developed strategy to make more convenience for investors investing in the region. As examples special industrial zones, tax incentives, zero-cost land and buildings, welcoming local authorities, and other benefits can be stated.

By the end of 2018, there were 173 enterprises with foreign capital, 18 foreign enterprises, 155 joint ventures. In 2019, 25 enterprises with foreign capital have already been launched and other 54 business entities with foreign capital are expected to launch their businesses until the end of the year.

Privileges and Preferences in Free Economic Zone

It is important to note that FEZ “Andijan-Pharm” is established in order to create favorable conditions for active attraction of investments, primarily foreign direct investment, for implementation of investment projects on creating high-tech pharmaceutical enterprises, saturating the market with high-quality domestic pharmaceuticals, including based on deep processing of local plant materials, as well as integrated and efficient use of

production and resource potential of Andijan region, creating new jobs on this basis and increasing incomes of the population of Uzbekistan.

The main objectives and areas of activities of FEZ “Andijan-Pharm” are: – attraction of investments and advanced technologies of leading companies for creation of modern industries on production of pharmaceutical products and medicines with high added value, including in “in-bulk” form

– creation of new modern production facilities and capacity for processing medicinal plant materials and production of finished medicines, medical products, auxiliary and packaging materials

– ensuring integrated and efficient use of production and resource potential of Andijan region in terms of growing medicinal plant materials in natural conditions for subsequent processing

– deepening the process of localizing production of pharmaceutical products based on local medicinal plant materials and raw materials by establishing close cooperation and development of industrial cooperation between organizations of free pharmaceutical zone and the country as a whole

– advanced development of engineering-communication, road transport and social infrastructure formation of modern infrastructure of high-quality logistics services on its territory

– participation in training highly qualified specialists based on the current and future needs of FEZ “Andijan-Pharm” in specialized personnel, including through their internship at enterprises located on the territory of FEZ “Andijan-Pharm”.

Companies operating in the above FEZ are eligible for relief on land tax, property tax, corporate profit tax, tax on social infrastructure improvements and others. As an additional stimulus, in addition to general concessions applicable in all FEZs, the government has introduced special rules easing restrictions on foreign currency payments for companies registered in these FEZs and introduced tax stability provisions.

All businesses operating in the territory of FEZs can now make foreign currency transactions with local vendors and expect the following privileges:

- Exemption from paying land tax, income tax, tax on property of legal entities, tax for accomplishment and development of social infrastructure, single tax payment for micro-firms and small enterprises, as well as obligatory contributions to the Republican Road Fund and off-budget Fund for Reconstruction of Schools, Colleges, Lyceums, and Medical Institutions.

- Exemption from Customs payments (except Customs clearance fees) for equipment, materials and components imported to cover their own production needs, as well as for building materials that cannot be sourced in Uzbekistan for projects approved by the government.

The validity of the above privileges depends on the amount of investment:

- Three years for investments from US$ 300,000 to US$ 3 million;

- Five years for investments from US$ 3 million to US$ 5 million;

- Seven years for investments from US$ 5 million to US$ 10 million;

- 10 years for investments of US$ 10 million and above, with a 50% reduction of income tax for the subsequent five years.

Bilateral relations

Currently, the leadership of the Republic pays special attention to strengthening the Uzbek-Indian bilateral relations in all spheres.

State visit of the President of the Republic of Uzbekistan H.E. Shavkat Mirziyoyev to India September 30 - October 1, 2018, as well as the participation of High-level Uzbek delegation in Vibrant Gujarat Global Summit 2019, allowed to bring Uzbek-Indian cooperation to a new level in the trade, economic, scientific, technical and investment spheres.

As the result of these visits more than 60 investment agreements worth $ 2.0 billion are being implemented.

Amity and Sharda Universities opened their campuses in Tashkent and Andijan cities of Uzbekistan.

With the focus on attracting Indian pharmaceutical companies FEZ “Andijan-Pharm” was established in Andijan in January 2019.

The Government of the Republic of Uzbekistan and the Eximbank of India signed an agreement on the provision of a soft loan in the amount of $ 200 million for the implementation of infrastructure projects in Uzbekistan.

  • 4

    Higher Institutions

  • 119

    Colleges

  • 8

    Academic lyceums

  • 23,312

    Workforce

  • 739

    Schools

  • 261

    Libraries

UPCOMING PROJECTS

Over the years of independence, attracted foreign direct investments to the region totaling – 1.3 billion dollars.

  • Enterprises with foreign capital – 173 unites
  • Foreign enterprises– 18 unites
  • Joint ventures – 155 unites
  • Foreign trade volume – 916,5 million USD.
  • Employed workforce – 23,312
  • Partner countries - China, Russia, Korea, Turkey, USA, Germany, Switzerland, Great Britain, Greece, Lithuania, etc.

POLICY & SCHEME

At the end of 2017, a draft of a consolidated legislative act was drafted - the draft Investment Code, which will become the basic normative legal act that most fully regulates investment activity. The main tasks will be the introduction of such innovations

  • Visa of the investor. (the right to permanent residence, simplified acquisition of citizenship)
  • Granting on a preferential or gratuitous basis of industrial buildings (state property);
  • Provision of customs and tax benefits;
  • Investment loan (granting loans in the form of cash);
  • Investment tax credits (from 1 to 5 years, in FEZ up to 10 years);
  • Investment subsidies (for the purchase of equipment and machinery);
  • Compensation for moral damage;
  • State support of innovative production;
  • Revised terms of concessions and PSAs; (Production Sharing Agreement) additional guarantees for foreign investors.