A proposal to exempt those who promote reforms from liability when pilot projects fail has triggered heated debate among legislators in Shanghai.

The draft regulation, designed to establish Shanghai as a pioneer in carrying out and encouraging reforms, was put before the Standing Committee of Shanghai People's Congress for discussion on Wednesday.

The regulation comes as this financial center of China is under pressure to pursue economic transformation and is in urgent need of reforms to open up the bottleneck that has impeded its further development, experts said.

It also supports a speech by Premier Li Keqiang on March 29, when he called for greater courage and wisdom in pushing forward economic transformation and upgrading to achieve more sustainable growth in the long term.

Li said the Yangtze River Delta, consisting of Shanghai and its powerful neighbors, can spearhead reforms and set an example for the rest of the country.

According to the draft regulation, the city government will set up an award to encourage government agencies, companies, social organizations and individuals to be braver in reforms and innovations.

It sets a standard procedure for government departments on how to carry out pilot programs, involving sending proposals, early-stage research, formulating plans, collecting opinions, seeking approvals, launching the programs and implementing reviews.

Notably, the draft also says departments or individuals, as long as they follow the standard procedures and do not seek private gain, will be granted indemnity from administrative or legal accountability even though they fail to achieve designated goals during the reforms or innovations.