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EDF Has Launched A New Program To Defense Companies And Localization Of Components Production

 Industrial Development Fund has launched a new program - "Conversion" and "Components". The first will allow defense enterprises receive preferential loans for the production of high-tech products for civil or dual-use, and the second is aimed at developing the production of components that have no domestic counterparts.

"Using OPK potential in the production of high-tech products for civil and dual-purpose - it's one of the key objectives of industrial development, set before us President Vladimir Putin, because in 2020 a large-scale rearmament of the army and navy will end, and supplies the peak in the state program of armaments development will be passed . For the capacity utilization of MIC enterprises require reorientation of production for advanced and competitive civilian products in the fields of energy, aerospace, machine tools, medicine and shipbuilding ", - said the head of the Russian Industry and Trade Denis Manturov.

The Minister explained that one of the main problems in the transition of such enterprises to "civil track" is the lack of investment funds. Defense companies receive the bulk of funding for the state defense order lines, so attempting to transition to civilian production immediately raises the question of the title of co-financing. Soft loans will allow EDF defense enterprises to embark on similar projects in the shortest possible time.

The loan amount under the program of "conversion" of 200-750 million rubles for the period up to 5 years, with the first three years of use of the loan rate is 1%, then the standard for the Fund of 5%. The total budget of the project starts from 400 million rubles, the co-financing of EDF up to 50% of the project budget, and the borrower has to pay for its own account at least 15% of the loan amount.

The second new program FER "Hardware products" aimed at modernizing and organizing the production of components that have no analogues in the Russian production or produced in insufficient quantities. We are talking about the production of components used in the composition of industrial products, listed in the Russian Federation # 719 PP.

"It is important to produce a final import-substituting products. But more importantly by producing components for it. In Russia, there is a problem with the production of components - the companies lack of own funds and the possibility of attracting credit available for these purposes. In addition, in the manufacture of components have an extra cycle of tests at customers and integrators. During this cycle, the manufacturers no incoming cash flow and, in fact, they have nothing to pay on loans, and this is an additional barrier. The new financing program FER "Components" is designed to overcome it , - said Deputy Industry and Trade Ministry of Russia Vasily Osmakov.

The loan amount under the program of "Components" is 50-500 million rubles for the period up to 5 years, with the first three years of use of the loan rate is 1%, then the standard for the Fund of 5%. The grace period for the first three years, due to the need to test components at customers and as a consequence, the lack of incoming cash flow from sales. The total budget of the project starts from 71.5 million rubles, the co-financing of the PRP amounted to 70% of the project budget, and the borrower has to pay for its own account at least 15% of the loan amount.

In particular, it may be components for machine tools or power equipment. This program will improve the overall level of localization of production of final products in Russia.

 

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