Development and Reform Commission: Strictly Controlling New High Energy Consumption Projects

In order to curb the blind expansion of high-energy-consuming industries, the National Development and Reform Commission has issued an urgent circular recently, requiring all localities to not violate the laws, regulations, and policies of the country, and to formulate preferential policies to encourage the development of high-energy-consuming industries. Those that have already been introduced must be resolutely repealed. .
The notice pointed out that since 2007, the domestic energy supply, especially the contradiction between electricity supply and demand has generally eased, and high-energy-consuming industries have begun to expand blindly in some areas. Some local governments also violated industrial policy regulations and introduced some industries that encourage the development of energy-intensive industries. The preferential policies, the high energy-consuming industries as the focus of investment, resulting in most of the high-energy-consuming products in the first quarter of this year, the output growth rate of more than 20%.
In this regard, the notice clearly requires that investment is prohibited through various preferential policies such as tax reduction and exemption, blindly on the project. In all types of investment promotion activities, all preferential policies and measures formulated by the government that do not comply with relevant laws and regulations and national industrial policies must be abolished.
The notice also requires strict control of new energy-intensive projects. Strictly invest in new high-energy-consuming projects in steel, electrolytic aluminum, copper smelting, ferro-alloy, calcium carbide, coke, cement, coal, and power industries, and strictly enforce energy-saving assessment requirements for investment projects.

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