Expansion and Reconstruction of Running Enterprises, ways to increase their capacity and improve facilities. Expansion of enterprises implies the introduction of new shops and work areas and the hiring of additional labour. The effect is greatest when the enterprise is expanded by replacing facilities and introducing the latest highly efficient technology. Reconstruction is a radical overhaul in which fixed assets are renewed and production organisation and techniques are significantly changed. Reconstruction is designed to improve the technology, techno-economic indices, and working conditions. The advantage of reconstruction and overhaul over the building of new enterprises is that available buildings and structures are used and money which would be allotted to the production infrastructure can be saved. Furthermore, the skilled work force, housing and cultural amenities of the existing enterprises are used. Capital investment in reconstruction is on the average 8 to 10, and in some cases 25 to 30 per cent more productive than in new construction. The time of introducing production capacities is reduced by a third to a half. The funds for reconstruction and technical overhaul are steadily growing in the USSR. A range of measures is currently being taken to encourage technical overhaul and reconstruction of existing enterprises. Managers of production combines (enterprises) are empowered, within the limits of capital investment, construction and assembly activities, and material funds, to approve lists of facilities for technical overhaul independent of the total estimated cost of the activities. Forms of material incentives for people involved in the overhaul are extended. Whenever economically and technically sound, ministries and agencies are allowed to establish specialised construction and assembly bodies to do technical overhauls and reconstruction.