Authorities announce record investments in Dagestan and establish investment support centre

In 2011, investors allocated to the economy of Dagestan 135 billion roubles. To monitor qualitatively the investment projects, the "Centre for Investment Promotion" will be established in the republic. This was announced by Magomedsalam Magomedov, the leader of Dagestan.

The proposal to create the "Centre for Investment Promotion" was approved at the meeting of the Council for Investment to President of Dagestan, which was held in Makhachkala on March 12. The new structure will examine investment projects and their support to their full implementation.

"In 2011, the republic attracted a record number of investments, which amounted to 135 billion roubles almost 6 percent higher than in 2010," said the leader of Dagestan at the meeting.

According to Mukhtar Medjidov, Deputy Prime Minister of Dagestan, one third out of 73 investment projects are at the stage of implementation.

These are the projects of production of flat glass, glass containers, implementation of fibre-optic communication lines, creation of a modern IT-park, production of raw gypsum, ceramic granite and other building materials, production of meat and dairy products, building of greenhouses, reconstruction and modernization of agricultural processing enterprises and other.

According to the observer Sergey Israpilov, the main problem of Dagestani economy is inefficient use of available resources due to support of inefficient branches of economy.

"The increase in tax collection represents one of few ways to find the necessary resources for investment. Only the alcoholic beverage market can pay up to 14 billion roubles of taxes annually, and that would be enough to double the amount of state investments into infrastructure and economy. However, excess profit from alcoholic beverages often remains in shadow and feed the 'gray economy'," believes Sergey Israpilov.