The Diet on Wednesday enacted a law aimed at reforming public corporations and government-authorized nonprofit bodies.

In a plenary session, the House of Councilors approved the bill to reorganize and consolidate 77 public corporations and 86 state-authorized nonprofit bodies, with the ruling coalition and the main opposition Democratic Party of Japan lending their support.

The government plans to set up a headquarters to promote reform of public corporations and other public entities on Friday, when the law goes into force, government officials said.