The government, facing stiff resistance from the opposition camp, has given up launching a new nuclear regulatory agency Sunday under the Environment Ministry and will instead continue the current setup under the atomic power-promoting industry ministry despite the watchdogs' lost credibility due to the Fukushima meltdown crisis.

"It is extremely deplorable that the launch of the agency is not in sight," nuclear disaster minister Goshi Hosono told reporters Friday, noting the Diet has not even begun deliberating on the related bills.

The Nuclear and Industrial Safety Agency, under the Ministry of Economy, Trade and Industry, will continue to serve as the primary regulatory body, and the Nuclear Safety Commission of the Cabinet Office, which has overseen NISA's activities, will also remain in place.