Presidential Decree No. UP-14 “On measures to regulate the activities of cotton-textile clusters.”

The President, in order to further improve the activities of cotton-textile clusters, increase their role and responsibility in the effective use of agricultural land, and widely introduce market principles to ensure the interest of producers and processors of cotton and textile, decrees to set up National Commission to coordinate the activities of cotton-textile clusters. The main tasks of the National Commission shall be as follows: (a) consideration of applications from applicants for the creation of cotton-textile clusters; (b) conducting an analysis of the activities of cotton-textile clusters, including fulfillment of obligations under contracts concluded within the cluster, timely repayment of bank loans received; (c) submitting proposals to the Government to eliminate systemic problems arising in the activities of cotton-textile clusters; and (d) issuing recommendations to terminate the activities of the cotton-textile cluster that violated investment obligations. This Presidential Decree establishes the following procedure: (a) creation of a cotton-textile cluster shall be performed by a resolution of the Cabinet of Ministers based on the conclusion of the National Commission. At the same time, allotting to cotton textile cluster land based on lease rights carried out on the basis of the applicant’s application in the manner established by acting legislation; (b) when creating cotton-textile clusters, preference shall be granted to the applicant who has his own processing capacity (as a minimum amount of yarn) at least 50 percent of the produced or purchased raw cotton, in relation to other parties; and (c) a four-party agreement for a period of thirty years is concluded between the Ministry of Agriculture, the Association of Cotton-Textile Clusters of Uzbekistan, the Council of Ministers of the Republic of Karakalpakstan or the local self-government, respectively, and the applicant for the creation of a cotton-textile cluster. At the same time, if the applicant is an enterprise with foreign investment or a foreign legal entity, then the four-party agreement is concluded for a period of up to twenty-five years.