The Ministry of Industry and Trade has developed a mechanism that will provide support to manufacturers of auto components, follows from the draft resolution published on the federal portal of draft regulatory legal acts.
“The mechanism involves the provision of concessional loans in the amount of 50 million rubles. at a rate of 1% per annum for up to 60 months, ”the ministry’s press service said.
As the head of the ministry Denis Manturov explained, the funds can be spent on launching investment projects for the localization and import substitution of units and assemblies for cars and specialized equipment. The loan is provided by the Industrial Development Fund and can cover up to 40% of the project budget, the minister said.
According to him, in case of successful implementation of the project, the investor has the right to receive a subsidy from the Ministry of Industry and Trade in the amount of the borrowed loan to repay it. “Federal support will provide financial leverage to launch the project and make it more economically feasible for companies to transfer production sites to Russia, rather than direct import of auto components,” Manturov explained.
In November last year, it was reported that the Ministry of Industry and Trade in 2021 intends to send 17.5 billion rubles. on measures of state support for the Russian automotive industry.