Henan: Difficult Coal Enterprises Will Get Help from the Government

Henan Province has taken significant steps to support struggling coal enterprises, as part of a broader initiative aimed at stabilizing the local economy and ensuring long-term development. Recently, the Henan Provincial Enterprise Service Activity Office released a list of 117 enterprises facing financial challenges in 2014. Among them are several key coal mining companies, including those under the Zhengzhou Coal Industry Group, the Henan Coal Mine Energy Group, and the Coking Coal Group.

In response to the difficulties faced by these businesses, the Ministry of Industry and Information Technology of Henan Province issued a joint notice in December 2013. The notice outlined continued support for enterprises that encountered temporary setbacks but still showed potential for future growth. This initiative aims to provide relief and help these companies navigate through tough economic conditions.

The government has introduced a comprehensive set of policies designed to ease the burden on struggling enterprises. First, there is a policy focused on reducing administrative burdens. All existing fees and charges will be applied according to the maximum limit, while small and micro-enterprises will benefit from exemptions or reductions in administrative fees. Additionally, unnecessary administrative approvals will be eliminated, helping to streamline operations for these firms.

Second, social insurance policies have been adjusted to better support enterprises in need. Companies facing financial difficulties can delay payments of five types of social insurance premiums and enjoy reduced rates for medical, unemployment, work injury, and maternity insurance. For those struggling with hiring and paying employees, the government offers social insurance subsidies. Moreover, stable enterprises that commit to not laying off workers may receive unemployment insurance subsidies to help maintain employment levels.

Third, fiscal and tax measures have also been put in place. Eligible enterprises can apply for reductions or exemptions on real estate and urban land use taxes. Furthermore, the province is expanding the use of local products in major infrastructure projects and government procurement, giving struggling enterprises a better chance to participate and gain contracts.

Finally, the government is focusing on providing essential resources and support. Financial institutions are encouraged to offer extended payment terms to affected companies without lowering their credit ratings or cutting off access to credit. Training funds for employees will be used to support on-the-job training for these enterprises, with additional funding available if needed. Subsidies for vocational training will not exceed 50% of the total costs, ensuring that support remains targeted and effective.

This multi-faceted approach demonstrates the government’s commitment to helping coal enterprises in Henan overcome their current challenges and emerge stronger in the long run.