In promoting the unification of registered production capacity and actual production capacity, a small number of cross-provincial capacity replacement projects have emerged when the cement clinker production capacity of completed projects has been completed.
According to the provisions of the Measures for Capacity Replacement (2024 edition), for new projects across provinces, the provincial industrial and information authorities at the construction site of the project shall entrust industry organizations or intermediaries to hold hearings before publicizing the capacity replacement plan. That is to say, the capacity replacement projects to be heard are limited to new projects requiring capacity replacement across provinces.
Recently, the competent department of industry and information technology of a northern province organized a hearing on the replacement scheme of supplementary production capacity of a cement clinker production line with a daily output of 5250 tons of a cement company in the province. The supplementary capacity is proposed to come from a 2500t/d cement clinker line in a southern province. The announcement said that the project capacity replacement plan should be strictly examined in accordance with the law and regulations to prevent fraud and eliminate hidden dangers of capacity replenishment. The hearing system for
new cross-provincial capacity replacement projects originated from the notice issued by the General Office of the Ministry of Industry and Information Technology and the Development and Reform Commission in August 2018 that the new capacity of the cement flat glass industry should be strictly prohibited. The notice requires that the provincial authorities at the project construction site shall entrust national industry organizations or intermediaries to hold hearings before the announcement of capacity replacement across provinces. We will resolutely and strictly examine the project capacity replacement plan in accordance with the law and regulations, prevent fraud and eliminate hidden dangers of new capacity. One of the highlights of the
Capacity Replacement Approach (2024) is how to simplify the process of capacity transfer across regions. It simplifies the procedures for the transfer of some production capacity across regions, promotes the orderly flow of market elements, and realizes the optimal allocation of resources. The measures do not stipulate that the project of cross-provincial capacity transfer of compliance production lines for capacity replenishment should carry out the procedure of entrusting industry organizations or intermediaries to hold hearings before publicizing the capacity replacement plan. Since the cross-regional capacity transfer procedures for new projects can be simplified, there is no need to add an additional procedure for projects that only comply with the cross-provincial capacity transfer of production lines to supplement capacity! It is necessary to strictly review the project capacity replacement plan in accordance with the
law and regulations, prevent fraud and eliminate the hidden dangers of capacity replenishment, but whether it is necessary to hold a hearing on capacity replenishment like a new project, and whether it will help simplify the procedures of capacity transfer across regions and promote the orderly flow of market elements is open to question.
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