Japan - Japan govt hands $11.5 bln aid to TEPCO: reports

Japan's government on Friday reportedly agreed to give the operator of the stricken Fukushima nuclear power plant $11.5 billion in aid to help it pay compensation to those affected by the disaster.

"On Friday, Economy, Trade and Industry Minister Yukio Edano approved an emergency business plan for TEPCO's restructuring programme," Jiji press reported.

"It is officially decided to inject some 900 billion yen in public funds into TEPCO so that it can smoothly and promptly carry out its payment of compensation to victims of the accident."

Tokyo Electric Power Co. submitted its request to the government last week.

The utility is looking to receive the first tranche from a government-backed aid body so it can avoid having a negative net worth on its April-September balance sheet, local media reported.

The restructuring plan the government had demanded also outlines cost cuts, asset sales and other steps required to help it meet compensation costs -- estimated by a government panel at 4.5 trillion yen by 2013 -- and secure further state help.

TEPCO's woes began when the 9.0-magnitude quake and massive tsunami of March 11 knocked out cooling systems at the Fukushima plant, sparking meltdowns, a series of explosions and the release of huge amounts of radiation into the environment.

Tens of thousands of people remain evacuated from homes and businesses in a 20 kilometre (12 mile) no-go zone around the plant and in pockets beyond. Fully decontaminating those areas is expected to take decades.

AFP

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