Tatarstan Mechanical Engineering Pole Supervisory Board Meeting –

Tatarstan’s mechanical engineering hub nearly collapsed after the cancellation of the Ministry of Industry and Trade’s subsidy program, despite only receiving 75 million rubles

Photo credit: Rinat Nazmetdinov

As Realnoe Vremya discovered, Tatarstan’s Mechanical Engineering Pole, which has 165 members, has lost significant budget support along with other players. Due to the pandemic, the Russian Ministry of Industry and Trade suspended for the first time in five years a subsidy program of up to 50% of costs at all stages of the production lifecycle, but Work is now being done to resume it, said the head of the Tatarstan Investment Development Agency and chairman of the cluster supervisory board Taliya Minullina on February 18. However, cluster members have received 75 million rubles in grants, including zero-interest loans to pay salaries and are waiting for the program to relaunch this year.

Russian Ministry of Industry and Trade to resume program in March

Tatarstan Investment Development Agency hosted the annual general assembly of members of Tatarstan Mechanical Engineering Pole and a meeting of its supervisory board. The Director of the Tatarstan Investment Development Agency and Chair of the Cluster Supervisory Board, Taliya Minullina, chaired the meeting.

First, they assessed the consequences of the pandemic. Since last spring, the Russian Ministry of Industry and Trade has suspended the program in accordance with Decree No. 41, Minullina said. The case is the document on the adoption of rules of subsidies to members of industrial clusters of the federal budget to offset part of the costs of joint projects on industrial production of the cluster for import substitution. Grant money can be spent to pay rent for equipment, interest on loans taken for the purchase of equipment, software, major construction work, etc., the sum is 70% of the amount of these expenses.

The Russian Ministry of Industry and Trade has long helped clusters to encourage cooperation between manufacturers and construction contractors. Those who comply with the requirements could receive significant financial assistance. 24 clusters that went through a selection process were to receive 5.9 billion rubles in federal grants until 2021. The Mechanical Engineering Cluster of Tatarstan was one of them. But he did not receive the money.

Since last spring, the Russian Ministry of Industry and Trade has suspended the program in accordance with Decree No. 41, Minullina said. Photo credit: Rinat Nazmetdinov

However, the possibility of resuming the program is being discussed now, Ms. Minullina made the members happy. “We are only waiting for the last signature of the Russian Ministry of Finance”, added Oleg Korobchenko (Korib TH), member of the board of directors of the pole. According to the chairman of the board of the cluster, Sergei Mayorov, it will resume in March.

Escape to the PSEDA

However, 2020 has not been a destructive year for everyone in the cluster. “The automotive engineering industry has grown, especially some of its members,” said the head of TIDA. “The production of building materials has shown positive dynamics. But the manufacture of equipment for the oil and gas complex fell. However, cluster members have started to reach priority social and economic development areas. Kamkhimmash got a ticket to tax haven. Module, Promtekhkomplekt enterprises are planning to obtain the enviable status of PSEDA residents.

Generator production was started in Mendeleevsk, although the solemn opening ceremony is scheduled for February 26. KORIB’s Yelabuga accumulator factory is functioning quite well. In addition, 45 accumulator collection points across Tatarstan will open in the future. A license for hazardous waste was obtained last year.

Zias Machinery Volga Region LLC plans to launch the second stage in the second quarter. KORA Universal, a member of the cluster, posted 50% growth in 2020. Beton-Kama will increase production in the second quarter in Nizhnekamsk.

KORIB’s Yelabuga accumulator factory is functioning quite well. In addition, 45 accumulator collection points across Tatarstan will open in the future. Photo:

Kaluga’s support is better than Tatar

The head of the cluster’s environmental projects committee and the general manager of Kaluga’s Bonus-Kama company Mikhail Makarov complained about difficulties in cooperation with large companies. He opened a tire recycling plant in Mendeleevsk but supplies raw materials from Ulyanovsk:

“If we have positive company emotions with KVART, but KAMA TIRES has scheduled a product test for the end of May. We were told to produce it, and they would try to test the product at the end of May and say something to the end of the year.

But he was very surprised that the support measures for Kaluga oblast in Tatarstan are not working: “We receive 50% of the subsidies for the purchase of industrial equipment or 70% of the rent allowances. I successfully take advantage of it, buy machine tools and receive compensation of 50%, but not more than 5 million rubles. But Tatarstan does not have such a measure, whereas we would like to have it!

The head of the cluster committee for the development of relations in construction and director of Zias Machinery in the Volga region, Nikolay Bulgakov, noted that the rise in steel prices has hit them hard: “Many projects are become unprofitable. International projects have also been frozen.

According to Sergey Mayorov, the number of members increased from five to 165 members. Photo credit: Rinat Nazmetdinov

The International Cluster Forum is ahead

The chairman of the board of the cluster Sergey Mayorov reported on the performance. According to him, the number of members has increased from five to 165 members. Cluster members are present in 18 Russian regions and two countries – Germany and Turkey. There were 9 trade missions to Bashkortostan, Leningrad oblast, Kirov and Saratov oblasts, they participated in 27 exhibitions and forums. But Supplier Day has been canceled due to COVID-19 restrictions. Thus, the cluster has signed 374 agreements with 67 regions and 23 countries around the world.

“We are waiting for support to resume,” Mayorov said. “Joint support for future cooperation projects is envisaged, up to 300 million rubles in grants, but not more than 30% of the value. It is not yet late to submit applications, the program has not yet been announced.

In conclusion, the president of the mechanical engineering cluster of Tatarstan, Taliya Minullina, spoke about the preparation of a forum.

“We have obtained the right to host the international cluster forum in Tatarstan. It was supposed to be last year but will take place this fall, ”she said.

In this regard, the head of TIDA urged the 13 clusters in the region to take the event seriously. “This applies to all the clusters that have been created in the republic. We have Innokam, a Research & Development division, mechanical engineering, IT and a few others. We will develop them and present them at the conference, ”noted Minullina.

By Luiza Ignatyeva. Photo credit: Rinat Nazmetdinov