Chinese to increase sown area in Penza region by renting fallow lands
Penza, 3 November 2016. PenzaNews. The Chinese company “Vannyan,” which stated its intention to increase sown area in the Penza region, will rent fallow lands on favorable terms. This agreement was reached as a result of the meeting with the head of the region Ivan Belozertsev, which took place in the governor’s house on Thursday, November 3.
© PenzaNewsBuy the photo
“In the Penza region, as in the Russian Federation as a whole, the land is so expensive and so much-in-demand now almost like in China. It is not enough for the development of agriculture,” the governor noted.
He expressed readiness to consider the possibility of granting investors from China lands overgrown with shrubs and woody vegetation for rent for up to 25 years with the priority right to purchase it in the future.
According to Ivan Belozertsev, the rental charges should be minimal.
After the founder of the “Vannyan” company Van Shibyao agreed with these conditions, the governor instructed the regional government deputy chairman Andrei Luzgin and the head of the regional Ministry of Agriculture Andrei Burlakov to prepare specific proposals to the investors.
“This should be an example for other agricultural producers. Everybody wants to get perfect land so that today the machines are out operating and tomorrow we can get the harvest in, but we have very little land of the kind left,” the head of the region noted.
The company “Vannyan” is engaged in creation of the Russian-Chinese agricultural park on the territory of Shemysheysky area of the Penza region. The project involves construction of a drying complex, a granary, a feed-milling plant and other facilities. The total investment is estimated at 10 billion rubles, the project implementation period is 5 years.
The investor started its work in April 2016. By now, 1 thousand 200 hectares of land was sown with corn for grain, the equipment was acquired, the construction of the drying complex with capacity of 500 tons per hour is coming to an end. The volume of investment by the Chinese amounted to about 100 million rubles.
By 2017, the “Vannyan” company plans to increase the land for crop growing to 20 thousand hectares.