5 Nov 2011

Govt funding for nuclear plant operator

5:34 am on 5 November 2011

The Japanese government is to give the operator of the crippled Fukushima nuclear power plant more than 900 billion yen ($US11.5 billion) to help pay for compensation.

The funding is being provided under an emergency plan to keep the Tokyo Electric Power Company in business.

TEPCO has reported a loss of 627 billion yen for the six months from April to September, due to the costs of dealing with the crisis at Fukushima.

That figure compares with a net profit of 92.3 billion yen in the same period last year.

The Fukushima Daiichi nuclear plant was extensively damaged by the earthquake and tsunami on 11 March, resulting in radiation leaks.

The BBC reports TEPCO may ultimately have to pay $US100 billion in compensation claims.

The losses and the compensation claims have raised concerns about the long-term prospects of the company.

But ABC reports that even with the funding, TEPCO is expected to post a loss of more than seven billion dollars this financial year.

The from Tokyo.