Industrial Permits Reviewed

EghtesadOnline: Atotal of 3.13 quadrillion rials ($12.12 billion) worth of investment was made in industrial units with establishment permits, while projects with operating licenses received more than 1.36 quadrillion rials ($5.29 billion) in the first eight months of the current Iranian year (March 20-Nov. 20).

News ID: ۷۸۵۷۴۱

09 January 2021

Investment volumes in units with establishment permits and operating licenses show respective a growth rate of 48.6% and 389.7% 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 25,108 establishment permits were issued over the eight months under review, registering a 45.4% year-on-year growth. These projects are expected to create 563,270 jobs, 41.2% more compared with last year's corresponding period.

Khorasan Razavi Province with 2,431, Yazd Province with 2,227 and Fars Province with 1,632 had the largest share of the establishment permits issued during the period.

The southern Khuzestan Province, with more than 313.93 trillion rials ($1.21 billion) worth of expected investments for 1,003 establishment permits is projected to attract the highest amount of investments. This amount registers a 70% hike compared with the corresponding period of last year.

The number of establishment permits issued for industrial units located in free trade and special economic zones decreased by 72.2% to 60.

Investments worth 34.07 trillion rials ($132 million) are expected to be made in these projects to generate 3.302 jobs, registering a 91.8% and 71.8% YOY downfall respectively.

The field of “other non-metal minerals” saw the highest number of establishment permits (3,165) and the highest number of jobs was generated in the field of food and beverages (61,953).

The highest volume of investment in these units is expected to be made in projects related to chemical production with close to 390.6 trillion rials ($1.51 billion). The volume accounts for 12.5% of all investments to be made in projects, for which establishment permits were issued over the eight-month period.

Operating Licenses

A total of 4,565 operating licenses were issued during the period under review, which shows an 11.6% YOY rise. These projects are expected to create 86,581 jobs, indicating a 35.8% rise compared with the corresponding period of last year.

Khorasan Razavi and East Azarbaijan Province with 316 each, Isfahan Province with 294 and Qazvin Province with 287 had the largest share of all operating licenses issued during the eight months.

The southern Khuzestan Province, with more than 575.85 trillion rials ($2.23 billion), attracted the highest volume of estimated investment in projects with operating licenses. The figure shows a whopping 7,318% upsurge compared with the similar period of last year.

The number of operating licenses issued for industrial projects located in free trade and special economic zones stood at 332, indicating a 20.7% growth YOY. Close to 244.27 trillion rials ($946.78 million) worth of investments are estimated to have been made in these projects to create 16,198 jobs, registering a 389.7% and 35.8% hike respectively YOY.

The field of chemical production saw the highest number of operating licenses, namely 693. The same field also created the highest number of jobs (10,411) over the eight-month period.

The highest volume of investments in this regard were made in projects related to the production of coke and oil derivitaves (576.04 trillion rials or $2.23 million), accounting for 42.2% of all investments made in industrial units for which operating licenses were issued.

The number of greenfield projects for which operating licenses were issued stood at 2,310, 170 of which were for those located in free trade and special economic zones, indicating a 9.9% rise and 1.7% decline respectively YOY.

A total of 2,255 permits were issued for the operation of brownfield projects, 162 of which were located in FTZs and special economic zones showed a 13.4% increase and 58.8% fall YOY, respectively.

Mineral Production Permits

A total of 410 mineral production permits were issued during the period, registering a meager 5.9% increase compared with the similar period of last year.

These permits are expected to create 3,365 jobs, which indicate a 2.4% increase compared with the same period of last year.

The nominal mineral extraction capacity of the projects stands at 34.65 million tons, which shows a 116.8% hike compared with last year’s corresponding period.

The provinces of Khorasan Razavi with 37, Fars with 35, Markazi with 31, Isfahan with 25 and Semnan and Qazvin with 23 each, had the largest share of mineral production permits issued during the period.

Mineral production permits issued over the eight months under review are expected to create the largest number of jobs in Fars Province (357), Khorasan Razavi Province (297), Kerman Province (308) East Azarbaijan Province (228), Hormozgan Province (189) and Markazi Province (167).

The provinces of South Khorasan, Hormozgan and Khuzestan with a total of 15.33 million tons, 3.01 million tons and 2.33 million tons respectively had the highest volume of nominal extraction capacities.

A total of 339 exploration permits were issued during the eight months ending Nov. 20. The figure shows a 5.3% rise compared with the corresponding period of last year.

Exploration costs stood at 844 billion rials ($3.27 million), registering a YOY increase of 9%.