Bill to sell off JR railways on its way to the Diet

In a further step toward the full privatization of Japan's railways, the Transport Ministry will submit a bill to privatize East Japan Railway Co., West Japan Railway Co. and Central Japan Railway Co. (JR Tokai) during the next ordinary Diet session, which starts next month, ministry officials said Thursday.

The ministry plans to submit the bill to exclude the three firms from the JR Law, and it plans to sell its stocks in the three -- now worth about 1.2 trillion yen -- at the earliest favorable opportunity, the ministry officials said.

The money-losing state-run railway was reorganized into seven private JR companies in 1987, but the government still holds considerable portions of the stocks, and under the JR Law the firms need the approval of the state in appointing top executives, issuing corporate bonds and drawing up an annual business plan.