China plans to raise minimum capital ratio for solar PV manufacturing to 30%
Reuters || Shining BD
Workers check solar panels at a photovoltaic power station in Chongqing, China, July 27, 2018. REUTERS/Stringer/File Photo
China's industry ministry issued on Tuesday a draft rule increasing the minimum capital ratio for solar photovoltaic (PV) manufacturing projects to 30%.
Previously, the minimum capital ratio was 30% for polysilicon manufacturing projects and 20% for other PV projects.
The rule applies to both new construction and expansion projects.
The comment period for the draft rule will run until July 15, according to a notice on the Ministry of Industry and Information Technology's (MIIT) website.
MIIT said the aim of the rule was to strengthen management of the PV industry and accelerate upgrading and structural adjustments.
The draft rule also said that registered companies' annual expenses for research and development and process improvement should be at least 10 million yuan ($1.38 million), and no lower than 3% of overall sales, in line with the existing guidelines.
($1 = 7.2725 Chinese yuan renminbi)
Shining BD
