The Japanese government agreed Friday to help the operator of a damaged nuclear plant pay compensation to victims of the crisis caused by the March 11 earthquake and tsunami, media reports said.
A new body will be set up to help make payments to those affected by the disaster at the Fukushima Daiichi nuclear power plant, Kyodo news reported.
Plant operator Tokyo Electric Power Co (TEPCO) is due to write off an estimated 1 trillion yen (12.35 billion dollars) in this financial year, DPA reported.
The company will need a similar amount to buy gas, oil and coal to fire conventional power stations to replace generating capacity lost at the Fukushima nuclear plant.
TEPCO agreed to implement extensive cost-cutting measures in return for the state aid.
After the quake, several reactors overheated at the plant, leading to fires and explosions which have left the facility leaking radioactive material ever since.
TEPCO is facing trillions of yen (tens of billions of dollars) in compensation claims from displaced residents and ruined businesses near the plant in north-east Japan.
Japanese government to help nuclear operator with compensation
The Japanese government agreed Friday to help the operator of a damaged nuclear plant pay compensation to victims of the crisis caused by the March 11 earthquake and tsunami, media reports said.
