Shanghai's legislature has proposed imposing heavy penalties on companies and their owners if they are held responsible for emitting black smoke or other pollutants without permission, Shanghai's Labor Daily reported on Nov 5.

The draft regulation said company owners or employees held responsible for pollution can face a fine up to 100,000 yuan ($16,000), and authorities can turn off power, water and gas supplies to an organization if it refuses to stop polluting.

The draft also proposed a higher threshold for new projects that may generate pollution and required the government to phase out outdated industries, techniques and equipment to improve air quality.