China's environment watchdog on Monday lifted a ban on new projects in a northern industrial city and by power company after they upgraded facilities and met environmental protection standards.

The State Environmental Protection Administration (SEPA) removed the restrictions on approving new projects in Tangshan, in the northern Hebei Province, and by the Datang International Power Generation Co., Ltd, according to a report on the SEPA website.

The city government of Tangshan had shown "a resolute attitude" in eliminating outdated and substandard facilities and halting high energy-consuming projects in the steel industry, said SEPA vice director Pan Yue.

"Discharges of sulfur dioxide (in Tangshan) will decrease by about 28 percent before the end of this year," he said.

The SEPA unveiled 82 projects that seriously violated environmental protection rules and requirements in January and ordered corrective action by issuing temporary bans on new projects.

Pan said Datang International's electricity plant in Tangshan had actively cooperated with the city government in drafting environment-friendly production plans after the company failed to meet environmental protection standards.

Tangshan would reform its industrial structure towards sustainable development, led by Shougang and Tangshan Steel and Iron Group, two major Chinese steel producers, said Pan.

Beijing Capital Iron and Steel Group, known as Shougang, earlier this month started construction of a new plant in Tangshan's southern area of Caofeidian, a coastal area 220 kilometers east of Beijing.

The new plant will be operational at the end of next year and will completely replace Shougang's old facilities in Beijing by 2010 to become the country's largest steel production base.