Govt. approves $11.5B aid to TEPCO

The Japanese government Friday approved $11.5 billion in assistance sought by the operator of the quake-hit nuclear power plant for compensation to victims. The aid, 900 billion yen, will allow the cash-strapped Tokyo Electric Power Co., to disburse massive compensation to those affected by the nuclear crisis at the Fukushima Daiichi nuclear power plant that was crippled by the March 11 earthquake-tsunami catastrophe. The approval came after TEPCO and a state-backed funding body offered a plan to cut more than 2.5 trillion yen ($32 billion) in costs over 10 years, Kyodo News reported. As part of that plan, TEPCO had requested a total of 1.01 trillion yen (nearly $13 billion) in financial assistance. The Wall street Journal said the government wants to keep the company going so it does not face any capital deficit this year that could have a major impact.