In a recent development, the Henan Provincial Enterprise Service Activity Office released a list of 117 struggling enterprises in 2014, with several coal mines under major groups such as Zhengzhou Coal Industry Group, Henan Coal Mine Energy Group, and Coking Coal Group being among those identified. These companies are facing significant challenges but are still considered to have potential for future growth.
To support these enterprises, the Ministry of Industry and Information Technology of Henan Province issued a joint notice in December 2013, outlining continued support measures for businesses encountering temporary difficulties in 2014. The aim is to help these companies overcome their current obstacles and regain stability.
The support policies include several key areas. First, there's a burden-reduction policy aimed at easing the financial pressure on these enterprises. Administrative fees and charges will be capped, and small and micro-enterprises will benefit from exemptions or reduced fees. Additionally, unnecessary administrative approvals will be reviewed and potentially eliminated.
Second, social insurance policies are also being extended. Companies facing difficulties can defer payments for five types of social insurance premiums and enjoy reduced rates for medical, unemployment, work injury, and maternity insurance. Enterprises that struggle with hiring and paying required contributions may receive subsidies, while those that commit to not laying off workers could get unemployment insurance support to maintain employment levels.
Third, fiscal and tax policies offer relief. Real estate and urban land use taxes may be reduced or waived after approval, depending on the situation. Furthermore, the government is encouraging the inclusion of provincial enterprise products in major projects and public procurement, helping these struggling companies gain more opportunities.
Lastly, there's a factor safeguard policy that encourages banks to provide extended payment terms to troubled companies without lowering their credit ratings. Training funds for employees will be used to cover on-the-job training costs, with additional support available through special employment funds if needed. The subsidy for vocational training will not exceed 50% of the total cost.
These comprehensive measures reflect the government's commitment to supporting key industries, especially in times of economic difficulty, ensuring that they can recover and continue contributing to the local economy.
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