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| Tepco to get $11bn government aid after plan approval | Tepco to get $11bn government aid after plan approval |
| (about 1 hour later) | |
| Tokyo Electric Power Company (Tepco) is set to receive 900bn yen ($11.5bn; £7bn) in bailout funds after the government approved its business plan. | Tokyo Electric Power Company (Tepco) is set to receive 900bn yen ($11.5bn; £7bn) in bailout funds after the government approved its business plan. |
| The funds are a part of the government's bailout plan for Tepco, which is expected to make a loss of 576bn yen this year. | |
| The earthquake and tsunami in March damaged its Fukushima Daiichi nuclear plant, resulting in radiation leaks. | The earthquake and tsunami in March damaged its Fukushima Daiichi nuclear plant, resulting in radiation leaks. |
| It may have to pay $100bn in compensation claims due to those leaks. | It may have to pay $100bn in compensation claims due to those leaks. |
| About 80,000 people living with 20km (12 miles) of the Fukushima plant were forced to abandon their homes after the radiation leaks and many businesses were forced to shut down. | About 80,000 people living with 20km (12 miles) of the Fukushima plant were forced to abandon their homes after the radiation leaks and many businesses were forced to shut down. |
| 'Thorough restructuring' | |
| The projected losses for the current financial year have further added to Tepco's troubles. The company had reported a loss of 1.26tn yen for the financial year ending 31 March. | |
| The losses coupled with the huge compensation claims it faces, had raised concerns about the long-term prospects of the company, prompting the government to step in a bid to bailout the company. | |
| The government set up a special fund, to help Tepco compensate the victims and maintain its operations. | |
| However, the government had asked the company to submit a business plan indicating how it indented to turn around its fortunes, in order to receive the funding. | |
| "I urge Tepco and the bailout fund to implement sincere compensation and thorough restructuring, taking into account that they are borrowing a massive amount of money from Japanese citizens," Japan's trade minister Yukio Edano said. | |
| The company had submitted its proposal last week which it said will help it cut almost 2.5tn yen in costs over the next ten years. |