EMC LED PPP will take time to cancel subsidies lighting mode?

Rectangular lighting May 25th evening release set by the plan, the company intends to not more than 5 specific objects, non-public offering of not more than 100 million shares, the total funds raised not more than 910 million 717 thousand and 500 yuan, to be used for lighting energy saving projects and add liquidity to the "PPP mode".

Rectangular lighting will change EMC mode to PPP mode, with the State Council issued "on the day before the cancellation of non administrative licensing examination and approval decision", cancel the contract management of energy subsidies, vigorously develop the "PPP mode". As a new model of concern in recent years, along with the weakening of the EMC model, PPP model in the industry set off a wave of controversy.

News review

The State Council canceled the contract energy management subsidies will vigorously develop PPP model

The State Council issued "on the day before the cancellation of non administrative licensing examination and approval decision", and then cancel the 49 non administrative licensing approval, the 84 non administrative licensing approval for the government to adjust the internal examination and approval. In the future no longer retain non administrative approval this approval category, matters for the government to adjust the internal examination and approval, not for citizens, legal persons and other social organizations to implement approval; examination and approval departments should strictly regulate the examination and approval, clear the internal government approval authority, scope, conditions, procedures, time limits, strictly limit the discretion and optimize the approval process, improve the efficiency of examination and approval. To further deepen the reform of the administrative system, further promote decentralization, put the tube combination, accelerate the transformation of government functions, and constantly improve the scientific management of government, standardization, the rule of law. The elimination of non administrative approval items including Interim Measures for contract energy management project financial incentives on the basis of "" (Cai Jian (2010) No. 249) document, approved by the national development and Reform Commission and the Ministry of Finance jointly approved the contract energy management project financial incentive funds.

Insiders said, PPP is a EMC variant, PPP is its own + government investment, EMC is the largest about 10000000 yuan, PPP can be hundreds of millions of dollars.

"PPP" refers to the mode of cooperation between government and social capital. The representative of the government is the local and national government, the social capital may be the private enterprise, the state-owned company or the specialized domain enterprise consortium. Due to the "PPP model" emphasizes the depth of participation of social capital, the promotion of this model, to revitalize the stock of social capital, to stimulate private investment in energy, raise funds for urban construction, control of government debt to ease the financial pressure, but also conducive to better government functions transformation, promote tax reform.

Industry perspective

In the new era, "EMC model" how to win?

Wang Chen, director of marketing, Ford

In recent years, due to the rapid development of LED upstream and downstream technology and product costs become more rational, coupled with the increasing opportunities for LED lighting industry, the process of its own structural optimization has also been highlighted. New technologies, new products, new formats, new business models continue to emerge in the future how to do EMC, from the following two points to interpret:

1, the EMC model normalization. Product stability and maturity is to promote the normalization of EMC a strong internal cause. The government subsidies support related outdoor road products is not very important, for the majority of energy service companies, after a long and cumbersome approval process, the application of the subsidy funds is only for the whole project Something is better than nothing., more and more small income effects. The government is more concerned about the EMC market operation of the industry, from the financial subsidies to promote the form of blood transfusion gradually transformed into market-oriented operation, with the strength of the market norms to guide the healthy development of the industry. The history of Ford over the years to high-quality products and services, to provide a powerful guarantee for the various types of domestic "EMC" operation units and projects, especially in the "EMC" project, manufacturers provide quality products and services is far more important than the price of the product.

2, the "PPP mode" will take time. Cancel the "EMC" special funds to pull the hair and the whole body, which requires a relatively long process. As for the "PPP" model, the government and social capital to establish "benefit sharing, risk sharing, full cooperation community relations is more suitable for large-scale infrastructure project investment, operation, and municipal public lighting project due to the operation process in the later period of the immediate steady cash flow, it is forced to follow the" PPP mode "is actually reluctant. Improper handling of a link, the government and investors will be subject to varying degrees of damage. The form, the procedure, the channel, the scope and the degree of the government's participation, which is a question worth exploring and puzzling.

For more information about LED, please click on China LED network or pay attention to WeChat public account (cnledw2013).