28 Nov 2018 17:35

Gaz intends to invest 20.9 bln rubles in automobile production under planned SPIC

NIZHNY NOVGOROD/MOSCOW. Nov 28 (Interfax) - The Gaz Group is planning to allocate 20.887 billion rubles to create new production capacity and renew existing capacities for production of light commercial vehicles and medium-duty as well as heavy-duty trucks as part of a pending special investment contract (SPIC).

The possibility of concluding the relevant agreement was considered within the inter-departmental commission at the Russian Industry and Trade Ministry, the press service for the governor and the Novgorod Region government said in a statement.

"According to preliminary calculations, roughly half of this total will be invested in the Gaz Group's enterprises in Novgorod," the statement said.

"Gaz will invest more than 20 billion rubles towards new production under the SPIC," the Novgorod Region's industry, trade and enterpreneurship minister Maxim Cherkasov was quoted as saying in the statement following a meeting of the inter-department commission in the Industry and Trade Ministry.

"At a meeting of the interdepartmental commission, we considered the possibility of concluding special investment contracts between the Russian government as represented by the Industry and Trade Ministry, the government of the Novgorod Region and Gaz Group. During the discussion, there were some small technical notes, but the project has been accepted in overall terms," Cherkasov said.

The SPIC envisages the implementation of a project aimed at "creating industrial production of wheeled vehicles on the basis of the Gaz Group's production facilities, including light commercial vehicles as well as medium-duty and heavy-duty trucks."

"The minimum volume of taxes, fees, insurance payments and customs duties for the projects is more than 63 billion rubles, including investments and taxes in other regions, including the Yaroslavl, Chelyabinsk, Ulyanovsk and Moscow Regions. Over the whole time of the projects implementation,up to 1800 jobs will be created throughout the country. An increase in export volumes of vehicles produced is also expected," Cherkasov said.