Japan Approves $11.5 Billion In Funds For Tepco

Published on Friday November 04 2011 (AEST)

Japan's Government approved Friday support funds for Tokyo Electric Power Co., also known as Tepco, with the move coinciding with the release of updated figures showing a massive net loss for Tepco for the fiscal year ending in March. 

Tepco will receive about 900 billion yen ($11.5 billion) in funds via the Nuclear Damage Liability Facilitation Fund to help compensate victims of radiation from the Fukushima Daiichi nuclear disaster. 

Tepco said Friday it expects a net loss of ¥576.3 billion for the fiscal year. It also said it plans to reduce staff numbers through a hiring freze, to cut pension benefits and to maintain a 20% salary reduction as part of cost-cutting moves. 

The measures will help lower operating costs by ¥237.4 billion in the 2013 fiscal year, Tepco said. Tepco shares ended 0.7% lower in Tokyo morning trade. 

In a related development, Japan's Ministry of Environment said contaminated materials released by Tepco's crippled reactors will be collected for the next 30 years and stored in concrete bunkers in Fukushima prefecture at a cost of about ¥1.1 trillion, according to Bloomberg News, which cited a ministry document.