Trade and industry minister Yukio Edano Wednesday approved a 10-year comprehensive business plan which Tokyo Electric Power Co. and the government-backed Nuclear Damage Liability Facilitation Fund on April 27 submitted to the government for restructuring the power company in the wake of the nuclear crisis at its Fukushima No. 1 nuclear power plant.
Through the fund, ¥1 trillion will be injected into Tepco in July at the earliest. The money will be used to compensate victims of the nuclear accident. The government will also acquire more than 50 percent of Tepco's voting shares to lead its reform. But even with these measures, there is no guarantee that Tepco's reconstruction will be carried out smoothly.
The ¥1 trillion will not be enough to cover compensation costs. The business plan envisages saving more than ¥3 trillion over 10 years through such means as wage cuts and asset sales. The saved money will also be used for compensation. In addition to the compensation, Tepco will face the difficult tasks of decontaminating areas exposed to radioactive materials from the Fukushima plant, and decommissioning the plant.