Ministry Reviews Industrial Permits Issued in Six Months

EghtesadOnline: A total of 2.24 quadrillion rials ($8.33 billion) worth of investments are estimated to have been made in industrial units for which establishment permits were issued, while projects with operating licenses attracted 379.89 trillion rials ($1.41 billion) in the first half of the current Iranian year (March 20-Sept. 21).

News ID: ۷۵۱۵۳۲

19 November 2020

Investment volumes in units with establishment permits and operating licenses show respective growth rates of 42.5% and 72.1% compared with the similar period of last year, the latest report released by the Ministry of Industries, Mining and Trade shows.

Establishment Permits

A total of 18,766 establishment permits were issued over the six months, registering a 46.9% year-on-year growth. These projects are expected to have created 410,376 jobs – 36.3% more compared with last year's corresponding period.

Khorasan Razavi Province with 1,841, Yazd Province with 1,762 and Tehran Province with 1,211 had the largest share of establishment permits issued during the period.

Yazd Province, with close to 209.96 trillion rials ($779.07 million) worth of investments for 1,762 establishment permits, is projected to have attracted the highest amount of investments.

The number of establishment permits issued for industrial units located in free trade and special economic zones decreased by 72.9% to 42.

Investments worth 19.79 trillion rials ($73.45 million) are expected to have been made in these projects to generate 2,206 jobs, registering a 95% and 76.4% YOY decline respectively.

Other non-metal mineral sector saw the highest number of establishment permits (2,295) and the largest number of jobs was generated in the field of food and beverages (47,683).

The highest volume of investment were made in projects related to chemical production with 287 trillion rials ($1.06 billion). The volume accounts for 12.8% of all investments for which establishment permits were issued over the period.

Operating Licenses

A total of 3,055 operating licenses were issued during the period under review, which shows a 1.4% YOY fall. These projects are expected to create 51,595 jobs, indicating an 8.2% rise compared with the corresponding period of last year.

Khorasan Razavi Province with 230, Isfahan Province with 225 and East Azarbaijan Province with 221 had the largest share of all operating licenses issued during the six months.

Isfahan Province, with more than 23.77 trillion rials (over $88.22 million), attracted the highest volume of investment in projects with operating licenses.

The number of operating licenses issued for industrial projects located in free trade and special economic zones stood at 67, indicating a 61.7% decline YOY.

More than 149.33 trillion rials ($554.11 million) worth of investments are estimated to have been made in these projects to create 3,183 jobs, registering a 706.1% upsurge and a 32.6% decline respectively YOY.

The field of chemical production saw the highest number of operating licenses, namely 502. The field of food and beverages created the highest number of jobs (5,899) over the six-month period.

The highest volume of investments in this regard was made in projects related to the production of essential metals (168.5 trillion rials or $612.46 million), accounting for 4.34% of all investments made in industrial units with operating licenses.

The number of greenfield projects for which operating licenses were issued stood at 1,511, some 31 of which were for those located in free trade and special economic zones. A total of 1,544 permits were issued for the operation of brownfield projects, 36 of which were located in FTZs and special economic zones.

Mineral Production Permits

A total of 308 mineral production permits were issued during the period, registering a 7.3% increase compared with the similar period of last year.

These permits are expected to have created 2,541 jobs, which indicate a 2.2% rise compared with the similar period of last year.

The nominal mineral extraction capacity of the projects stands at 13.95 million tons, which show an 18.1% increase compared with the corresponding period of last year.

The provinces of Fars with 29, Markazi with 27, Isfahan with 24, Semnan and Khorasan Razavi with 21 each, had the largest share of mineral production permits issued during the period.

Mineral production permits issued over the six months are expected to create the largest number of jobs in Fars Province (294), Kerman Province (245), East Azarbaijan Province (213), Khorasan Razavi Province (171), Markazi Province (146) and Semnan Province (145).

The provinces of Hormozgan, Khuzestan and East Azarbaijan with a total of 2.38 million tons, 1.66 million tons and 1.36 million tons respectively had the highest volume of nominal extraction capacities.

A total of 242 exploration permits were issued during the six months ending Sept. 21 to register a 1.3% rise compared with the corresponding period of last year.

Exploration costs stood at 574.9 billion rials ($2.13 million), registering a 30.9% increase YOY.