Ten Ministries Combined Policy To Eliminate Overcapacity

Experts believe that the price index of the whole society has little effect.

According to a recent report by the Ministry of industry and information technology and the national development and Reform Commission, the current situation of energy saving and emission reduction and elimination of backward production capacity is very grim.

From the relevant point of view, the ten ministries and commissions will improve the "combination policy" during the year, highlighting the restraint role of differential electricity price, total energy consumption restriction and accountability system on investment and production of enterprises, and curb the blind expansion of "two high" and overcapacity industries.

According to the latest data from the Ministry of industry and information, in the first 7 months of this year, the growth of high energy consumption and backward production capacity reached 12.8%, of which the output of steel, alumina, cement and ferroalloy increased by 13%, 18.9%, 19.2% and 21.9% respectively.

The national development and Reform Commission's "barometer of the completion of energy saving targets in different regions" shows that there are about 16 severe energy saving and emission reduction areas, of which 8 are in severe situation in Inner Mongolia and other regions.

The national development and Reform Commission, the Ministry of industry and the Ministry of Commerce and other ministries and commissions judged that there is a gap between the elimination of backward production capacity and the goal of achieving annual goals and tasks, and the task of the last four months is rather arduous.

The Ministry of industry and information said that there will be a series of major policies to eliminate backward production capacity and energy conservation and emission reduction.

At the recent work conference on elimination of backward production capacity, the Ministry of industry and industry of the Ministry of industry said that "backward production capacity is a technical judgement. Overcapacity is a market judgement."

Judging from the consequences of production, if the technical indicators of pollutant emissions, energy consumption and water consumption are higher than the average level of the industry, the production capacity is backward production capacity.

High energy consumption since this year

The national development and Reform Commission and the Ministry of industry and the Ministry believe that the situation of eliminating backward production capacity this year is grim from two aspects. First, the target is relatively high, and the two is that the implementation of the relevant areas is not enough.

It is understood that the Ministry of industry has issued to 18 provinces, autonomous regions and municipalities in 2011 the target of eliminating backward production capacity in the industrial sector.

Compared with last year, the 10 industries of steelmaking, ferroalloy, calcium carbide, electrolytic aluminum, copper smelting, lead smelting, zinc smelting, cement, flat glass, paper making and other industries eliminated backward production capacity increased by 218%, 29%, 92%, 77%, 149%, 141%, 198%, 46%, 301% and 72%, respectively.

As for this year's target and task increase, the Ministry of industry and Commerce official said recently that "the definition of backward production capacity has changed over the past two years, and the backward production capacity in the past is defined according to the principle of high energy consumption and heavy pollution". Now it is more referenced and based on more stringent environmental protection and energy consumption indicators.

Reporters learned that, in the light of the grim situation in the coming months, the state will strengthen policy restrictions.

First, we should continue to deepen the reform of the prices of resource products, straighten out the price relations of coal, electricity, oil, gas, water and mineral resources, improve the peak and valley TOU price, and increase the differential electricity price and punitive electricity price according to the procedures.

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Two, we should continue to push forward the reform of the price mechanism. In addition to converting the tax on crude oil, natural gas and coal resources from the quantity collection to the ad valorem levy and appropriately raising the level of tax burden, we will draw up the standard of motor vehicle fuel consumption limit.

Three, the national energy board is leading the study to establish a total energy consumption control system, so as to form a forced mechanism of total energy consumption and curb the excessive growth of high energy consuming industries.

The next step will be to speed up the study of the goal of establishing total energy consumption control, to decompose the mechanism to local governments, to implement the target responsibility system management, to set up a forecasting and early-warning mechanism for total energy consumption, and to implement timely warning and control in areas where energy consumption is growing too fast.

Four, the implementation of the elimination of backward production capacity targets and measures will be included in government performance management and performance management of state-owned enterprises, and accountability system should be implemented.

As for the impact of the "combination policy" on market prices, the experts say that, in general, it has little effect on the price index of the whole society, and the price impact on the related industries may have different effects.

According to experts from the Ministry of industry and commerce, from the iron and steel industry, most of the list of elimination of backward enterprises is small and medium-sized enterprises, mostly production line stud, so it has little impact on the whole industry price.

For steel listed companies, because the backward production capacity accounts for a small proportion of its total volume, it has little impact on the overall performance of the company.

The market generally expects that the elimination of backward production capacity has a significant impact on cement prices.