Measures for Financial Support of Industrial Revitalization under the Rural Revitalization Strategy in Ordos City
2022-01-25 00:00

Chapter 1 General Provisions

  Article 1: To fully implement the spirit of the 19th National Congress of the Communist Party of China, thoroughly carry out the rural revitalization strategy, actively leverage the guiding and catalytic effects of fiscal funds and financial instruments, pool resources, and promote the vigorous development of rural industries, these Measures are formulated in accordance with relevant national and autonomous region policies and guidelines, and in light of the actual conditions of our city.

  Article 2: Vigorously promote industrial development models such as “Party Branch + Leading Enterprise + Agricultural and Pastoral Households” and “Party Branch + Cooperative + Agricultural and Pastoral Households.” Priority support shall be given to agricultural and pastoral enterprises, industrial consortia, and cooperatives (including rural tourism associations and other agriculture- and pastoralism-related organizations) that have strong radiating and driving effects, produce significant income growth, possess substantial development potential, and have established close interest-linkage mechanisms with agricultural and pastoral households;family farms (including large-scale agricultural and pastoral households such as star-rated rural or pastoral tourism hosts in the autonomous region), as well as agricultural and pastoral households that operate legally and have established interest-linkage mechanisms with leading enterprises, cooperatives, rural tourism associations, scenic areas, and other organizations.

  Article 3: Priority support shall be given to agriculture and animal husbandry-led, advantageous, and distinctive industries, as well as industries such as forestry and desertification control, rural tourism, e-commerce services, and agricultural and animal husbandry technology services. In the Yellow River and Wuding River basins, priority support shall be given to the fruit, vegetable, corn, dairy cattle, and meat sheep industries, as well as the rural tourism industry; in the western Hard Ridge Area, priority support shall be given to the cashmere goat industry; in the desert areas, priority support shall be given to the fine-wool sheep industry;in the eastern hilly and mountainous areas, priority shall be given to the production of miscellaneous grains and legumes and the cashmere goat industry; in suburban areas, along major transportation routes, and around scenic areas, priority shall be given to the rural tourism industry; in ecological restoration zones and mining subsidence areas, priority shall be given to forestry and desertification control industries, circular agriculture and animal husbandry industries, as well as various agricultural and animal husbandry technology service industries that serve the "three rural areas" (agriculture, rural areas, and farmers). The industrial structure shall be continuously optimized to promote the integrated development of the primary, secondary, and tertiary sectors.

  Article 4: Industrial support funds shall adhere to government guidance and market-oriented operations to maximize the efficiency of fund utilization. The use of funds shall strictly avoid “blanket funding,” “scattergun funding,” and duplicate subsidies.

  Article 5: Guided by the principle of “industrializing ecological construction and ecologizing industrial development,” industries shall be developed through project-based operations. Full use shall be made of the strategic, guiding, constraining, and foundational role of the “Three Zones and Three Lines” in territorial spatial planning (the “Three Zones” being ecological space, agricultural space, and urban space; the “Three Lines” being the ecological protection red line, permanently protected basic farmland, and urban development boundary) to forge a new path of high-quality development that prioritizes ecology and promotes green development.

  Article 6: The People’s Governments of the banners and districts shall be the responsible entities for providing financial support to industrial revitalization efforts. The role of the Industrial Revitalization Special Promotion Group under the Municipal Leading Group for Implementing the Rural Revitalization Strategy (hereinafter referred to as the Industrial Revitalization Promotion Group) shall be leveraged to ensure that industrial revitalization proceeds in an organized, planned, and phased manner.Agricultural and livestock enterprises, industrial consortia, cooperatives, family farms, and farming and herding households shall serve as the implementing entities for projects. Project implementation must fully respect the intentions of these entities, stimulate their enthusiasm, initiative, and creativity in production and operations, and safeguard the autonomy of farming and herding households in their production and business activities.

  Chapter II: Project Management

  Article 7: Supported industries shall be managed through project-based management, market-oriented operations, and organized implementation. The Municipal Agriculture and Animal Husbandry Bureau shall organize the establishment of a city-wide supervision platform for financial support projects for industrial revitalization, implementing full-process supervision over project application, evaluation and inclusion in the project pool, risk compensation, and loan disbursement. For projects directly supported by fiscal funds, relevant regulations on performance evaluation management shall be strictly enforced, and evaluation results shall serve as an important basis for the disbursement of support funds and the arrangement of projects for the following year.Led by the relevant industry authorities and financial lending institutions, and supported by the Municipal Transformation and Development Investment Co., Ltd., a mechanism for holding project entities accountable shall be established in accordance with the principle of “who benefits, who is responsible.” Adhering to the principle of prioritizing economic benefits, this mechanism shall standardize the business operations of agricultural and pastoral enterprises, industrial consortia, cooperatives, family farms, and agricultural and pastoral households; scientifically manage the input-output relationship; clarify “responsibilities, authorities, and benefits”; and enhance the efficiency of support fund utilization.

  Article 8: The Municipal Agriculture and Animal Husbandry Bureau is responsible for establishing a municipal-level project database for financial support of industrial revitalization. Projects included in the database shall be subject to dynamic management.

  Article 9: Project Application and Review

  (1) Eligible Applicants. Agricultural and livestock enterprises, industrial consortia, cooperatives, family farms, and farming and herding households whose production and operations comply with national laws and regulations, agricultural industrial policies, and environmental protection requirements; whose operations are stable; that have not experienced any agricultural or livestock product quality and safety incidents within the past three years; that have no major adverse credit records; and that, at the time of loan application, have no outstanding non-performing loans or outstanding non-performing loans for which they bear guarantee liability.Implementing entities that have been approved for a project but failed to commence construction on schedule (except for force majeure), or whose projects have failed acceptance in recent years due to their own reasons, are ineligible to apply; entities listed on the dishonest entity list, those involved in litigation or enforcement cases before the People’s Court (except where the applicant is the plaintiff or the applicant for enforcement), or those facing significant operational risks are ineligible to apply.

  (2) Review and Recommendation

  1. Preliminary Review. Relevant industry authorities at the flag and district levels shall screen application projects within their respective sectors. After approval by the deputy head of the flag or district in charge and public notice, the projects shall be submitted to the municipal-level industry authorities for re-examination.

  2. Re-examination. The relevant municipal-level industry authorities, in conjunction with financial institutions, will evaluate and review the projects submitted by the flags and districts. Projects that pass the evaluation and review will be reported to the Municipal Bureau of Agriculture and Animal Husbandry for consolidation and classification into the city-wide financial support project repository for industrial revitalization.

  3. Promotion. Based on project classification and prioritization, the Municipal Agriculture and Animal Husbandry Bureau shall, at an appropriate time, promote projects to financial institutions, fiscal departments, and the Municipal Transformation and Development Investment Co., Ltd., and assist in securing financial loans and special funds.

  Article 10: Project Implementation. In principle, city-wide financial support projects for industrial revitalization shall be selected from the project repository. The people’s governments of the banners and districts, together with relevant municipal departments, shall assist in promoting project implementation. Upon completion of a project, acceptance shall be organized in accordance with relevant regulations on project acceptance management.

  Chapter III: Fund Management

  Article 11: Establishment of Special Funds for Industrial Revitalization. The municipal government shall establish special funds for industrial revitalization. For selected projects in the project repository, support shall be provided in accordance with laws and regulations through means such as financing guarantees, industrial fund guidance, risk compensation fund safeguards, and loan interest subsidies.

  Article 12: Implementation of Financing Guarantees. The focus shall be on providing financing guarantees to enterprises engaged in agriculture and animal husbandry.The Municipal Finance Bureau shall allocate special funds from the Municipal Industrial Revitalization Special Support Fund to increase capital and expand shares through the Municipal Agriculture and Animal Husbandry Financing Guarantee Company. Under the premise of controllable risk, guarantees shall be provided to agriculture and animal husbandry enterprises in accordance with relevant laws and regulations, including the Company Law of the People’s Republic of China and the Law of the People’s Republic of China on State-Owned Assets. Efforts shall be made to explore cooperation with market-oriented commercial financing guarantee companies, and flag and district guarantee companies shall be encouraged to actively participate in guarantee work.

  Article 13: Establishment of an Industrial Guidance Fund. The Municipal Finance Bureau, relevant state-owned enterprises in the banners and districts, and social capital shall jointly contribute to establish a Rural Revitalization Industrial Guidance Fund, with a focus on supporting corporate-style projects selected by financial institutions for inclusion in the project pool. The Municipal Transformation and Development Investment Co., Ltd. shall select a fund management company through a competitive process to be responsible for the investment management and operation of the fund.

  Article 14: Establish a Risk Compensation Fund. The Municipal Transformation and Development Investment Co., Ltd. shall open a special account to establish a risk compensation fund, providing risk compensation for loans issued by cooperating financial institutions in the field of financial support for industrial revitalization (the risk compensation amount for a single loan within the scope of risk compensation shall not exceed 30 million yuan, and the term shall not exceed 3 years). Cooperating financial institutions shall expand their credit limits by a certain ratio, with a focus on supporting agricultural and livestock enterprises, industrial consortia, cooperatives, family farms, and agricultural and livestock households.Banners and districts shall also establish corresponding risk compensation funds. In principle, unsecured loans shall not be included in the scope of risk compensation.

  Article 15: Innovate financial cooperation models. Engage multiple banks in financial support for rural industrial revitalization, strengthen multi-party cooperation, and coordinate efforts to build a diversified credit allocation mechanism. This will improve lending efficiency, provide personalized and differentiated financial products, and broaden financing channels in a multi-level and comprehensive manner to better meet the demand for diverse financial credit products in rural revitalization and support the development of rural industries.

  Article 16: Explore and innovate effective service models for banking institutions.Banking institutions shall actively participate in the establishment of risk compensation funds to expand the scale of loans and investments supporting agriculture and animal husbandry; under the premise of compliance with laws and regulations and controllable risks, explore and implement loan models for specialty industries that do not require collateral or guarantees; actively promote the credit rating work for villages; comprehensively utilize the “government + banks + insurance + enterprises + farmers” five-in-one risk-sharing approach to increase investment in credit products such as supply chain financing and live livestock and poultry collateral;actively promote the model of mortgage loans secured by rural contracted land management rights in rural and pastoral areas to further facilitate the capitalization of farmers’ and herders’ assets; establish a model of investment-lending linkage to promote the healthy development of agricultural and pastoral enterprises; and promote the “Party Branch + Cooperative + Farmers and Herders” loan model to ensure sustained income growth and prosperity for farmers and herders.

  Article 17: Implementation of Loan Interest Subsidies. Special funds shall be allocated from the municipal industrial revitalization special support fund to provide a fixed interest subsidy at an annual rate of 3% (three per mille) for loan projects (excluding working capital loans), with priority given to supporting agricultural and pastoral enterprises, industrial consortia, cooperatives, family farms, and farming and herding households included in the project database.

  (1) Eligibility Criteria for Interest Subsidy

  1. Agricultural and pastoral enterprises: Enterprises engaged in agriculture and animal husbandry that have established close interest-linkage mechanisms with farmers and herders through means such as signing contracts shall receive interest subsidies for the portion of loans up to 30 million yuan (including 30 million yuan).

  2. Industrial Consortia: Consortia that possess the basic characteristics of an industrial consortium, are capable of performing functions related to the production, processing, and distribution of agricultural and livestock products, maintain close interest linkages, and can integrate production, supply, and sales.

  3. Cooperatives: Cooperatives with a solid industrial foundation, strong capacity to provide services and drive development, and whose practices regarding the return of current-year surpluses and dividend distribution in accordance with shares comply with relevant cooperative laws, regulations, and bylaws are eligible for the interest subsidy policy.

  4. Family Farms and Ranches: Family farms and ranches, as well as autonomous region-level rural (pastoral) tourism star-rated accommodation providers, that meet the relevant certification criteria and have been recognized by the respective industry authorities are eligible for the interest subsidy policy.

  5. Farming and Herding Households: Farming and herding households that operate legally and have established interest linkages with leading enterprises, cooperatives, rural tourism associations, scenic areas, and other organizations are eligible for the interest subsidy policy.

  (2) Interest Subsidy Period. Interest subsidy funds are settled on an annual basis. The maximum subsidy period is three years; for periods shorter than three years, subsidies are provided based on the actual loan term.

  (3) Method of Interest Subsidy. A post-payment subsidy method is adopted, meaning that the borrower may apply for interest subsidy funds from the relevant industry authorities and finance departments of the banner or district only after repaying the principal and interest to the financial institution on schedule as agreed.

  (4) Approval of Interest Subsidies. The borrower shall submit a written application and relevant credit documentation to the competent industry authority at the banner or district level. After review and public notice by the competent industry authority in conjunction with the finance department and other relevant departments, the application shall be submitted to the municipal-level competent industry authority for review. Upon approval, the Municipal Agriculture and Animal Husbandry Bureau shall approve and consolidate the applications, and the Municipal Finance Bureau shall disburse the interest subsidy funds.

  Article 18: Special fiscal funds related to agriculture and animal husbandry shall be coordinated to support the effective integration of consolidating and expanding the achievements of poverty alleviation with rural revitalization. The scope of coordination includes funds from the fields of development and reform, natural resources, housing and urban-rural development, ecology and environment, agriculture and animal husbandry, commerce, water conservancy, forestry and grassland, finance, culture and tourism, transportation, science and technology, and electricity.

  Chapter IV: Risk Management

  Article 19: Each member unit of the Industrial Revitalization Promotion Group shall, in accordance with the principles of “whoever applies reviews” and “whoever accepts is responsible,” effectively strengthen the supervision of special funds for industrial revitalization and regularly track and inspect the application, allocation, use, and management of such funds.

  Any individuals, entities, directly responsible supervisors, or other directly liable parties who violate regulations on fund usage,or who misappropriate, withhold, divert, or embezzle interest subsidy funds, as well as individuals, entities, directly responsible supervisors, and other directly liable parties who fraudulently obtain interest subsidy funds through means such as false reporting or fraudulent claims, shall be held accountable in accordance with the relevant provisions of the "Regulations on the Penalties for Fiscal Law Violations" (State Council Order No. 588). The fund management unit shall recover the funds, which shall then be coordinated and allocated by the Municipal Finance Bureau to ensure the effective supervision and efficient utilization of the special support funds for industrial revitalization.

  Article 20. The people’s governments of all flags and districts, as well as relevant industry departments, shall establish and strengthen credit screening and constraint mechanisms for loan recipients based on the characteristics of agricultural and pastoral production and operations. They shall continuously enhance loan recipients’ awareness of financial laws and regulations and guide them to improve their credit awareness and creditworthiness. All types of loan recipients shall adhere to a market-oriented approach, thoroughly study various support policies, and enhance their capacity for industrial development.

  Article 21: Actively introduce commercial insurance and guarantee institutions, and explore the establishment of market-oriented joint guarantee, mutual guarantee, and bank-insurance-guarantee risk-sharing mechanisms; specific premium amounts shall be subject to the terms of the agreement.

  Article 22: For overdue loan principal arising from support provided to agricultural and livestock enterprises, industrial consortia, cooperatives, family farms, and farming and herding households, cooperating financial institutions shall submit a written application for reimbursement to the Municipal Bureau of Agriculture and Animal Husbandry in accordance with the terms of the cooperation agreement. Upon confirmation that the conditions for fund utilization are met, the Risk Compensation Fund shall reimburse the amount according to the specified sharing ratios. Specifically, for the principal of loans to agricultural and livestock enterprises, the municipal-level Risk Compensation Fund shall bear 50%,the county-level risk compensation fund shall bear 20%, and the remaining portion shall be borne by the cooperating financial institution; for the principal of loans to cooperatives, family farms, and agricultural and pastoral households, the municipal risk compensation fund shall bear 40%, the county-level risk compensation fund shall bear 20%, and the remaining portion shall be borne by the cooperating financial institution.The Municipal Transformation and Development Investment Co., Ltd., the Municipal People’s Government Financial Work Office, the Municipal Agriculture and Animal Husbandry Bureau, and relevant banners and districts shall cooperate in recovering overdue principal and interest on loans, and the proceeds from such recovery shall be distributed in accordance with the aforementioned risk-sharing ratios.

  Chapter V: Supplementary Provisions

  Article 23: The Ordos Municipal People’s Government shall be responsible for interpreting these Measures.

  Article 24: These Measures shall take effect 30 days after the date of promulgation and shall remain valid for three years. After the implementation of these Measures, if the state or the autonomous region issues separate provisions, such provisions shall prevail.


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