Three Japan Railway group firms moved closer to privatization Wednesday after Central Japan Railway Co. (JR Tokai) accepted a government bill that would strip away some of the vestiges of state control.

Land, Infrastructure and Transport Minister Chikage Ogi met JR Tokai President Yoshiyuki Kasai and the heads of East Japan Railway Co. and West Japan Railway Co. on Wednesday evening to explain that the ministry is poised to submit the legislation to the current Diet session.

If the bill clears the Diet, perhaps in May or June, the ministry may sell off its remaining shares in the three companies as early as fall and set the companies free from the JR Law, which requires JR group firms to seek government approval of their annual business plans, executive appointments and corporate bond issuances.

However, the bill won't set them completely free. It gives the transport minister power to issue "management guidelines" on such matters as cooperation between JR companies and maintenance of existing lines and facilities.

The transport minister will also have a say in the extent to which JR's peripheral businesses, such as hotels and shops, can compete in those sectors.

The proposed bill would also allow the minister to impose a fine of up to 1 million yen on JR companies who refuse the guidelines without providing "legitimate reasons," ministry officials said.

The government ostensibly privatized the JR companies when it disbanded the Japanese National Railways into seven firms in 1987.

The government owns 12.5 percent of JR East, 31.5 percent of JR West and 39.7 percent of JR Tokai. JR East went public in 1993. The other JR firms are not listed.

JR Tokai had been opposed to the bill because it wanted special measures from the government to help reduce the long-term debts from the firm's purchase in 1991 of the operating rights to the Tokaido shinkansen line, which runs between Tokyo and Osaka.

The other two firms do not have this kind of burden.

At a press conference after the meeting, however, Kasai said he believes both the firm and the government have come to "share the recognition" of the need for measures to aid JR Tokai.

In a separate press conference, ministry officials said the government promised to "make efforts" to help JR Tokai shave its debts in return for the firm's accepting the submission of the bill, but declined to go into details.