OREANDA-NEWS. January 31, 2014. A favorable investment environment has been instituted in Uzbekistan in the process of economic reforms being undertaken, facilitating the mounting appeal to foreign investments. As a result, the number of joint and foreign enterprises has been growing in manufacturing export oriented and import substituting goods.

Instrumental in these endeavors have been the laws of the Republic of Uzbekistan “On Guarantees and Measures to Uphold the Rights of Foreign Investors”, “On Foreign Investments”, along with decrees of the President of our country “On Additional Measures to Encourage the Attraction of Direct Private Foreign Investments” signed 11 April 2005 and that “On Additional Measures to Encourage the Attraction of Direct Foreign Investments” inked 10 April 2012.

This can be evident also in the case of the foreign enterprise Verigrow Ipagi that operates in Namangan. Once, the products of the giant factory “Atlas” used to enjoy a great demand. Ever since and up until very recently, the enterprise malfunctioned despite numerous changes in the type of ownership and owners.

In 2013, as part of the privatization underway in the country, the venture was transferred to a foreign investor. Thus, a major Indian textile company invested more than five million US dollars to open an enterprise entitled Verigrow Ipagi.

“65 percent of investments were assigned to the procurement of new machinery and technologies from abroad. The enterprise underwent modernization as well as technical and technological upgrading,” Abrorjon Hoshimov, deputy director general of the venture, says. “Local and foreign specialists have conducted assembly of production lines and first manufacturing capacities have been commissioned.”

80 percent of goods produced last year worth more than one billion soums were sent for export. 180 specialists are currently working at the enterprise that initially used to employ 60 people.

“The installation of new equipment is to be complete soon,” says the chief engineer of the venture Shashidhar Chawadi. “Afterwards, the volumes of production are expected to grow by 70 percent, and there will be an opportunity to produce yarn for two billion soums. 60 new jobs will be created. In order to appeal to young specialists, cooperation has been established with specialized professional colleges, and specialists are being trained also at the premises of the enterprise, as well, building on the traditions of “Mentor-Apprentice”.”

The major part of the raw silk is supplied by the silkworm breeders of the province. In accordance with recommendations of specialists of the enterprise, cutting-edge technologies in nurturing cocoons succeeded in tests during the spring and autumn.