UPDATE 1-Japan mulls spinning off part of nuclear operator-Jiji

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TOKYO, April 12 (Reuters) – The Japanese government is
considering spinning off the part of Tokyo Electric Power Co
(TEPCO) that oversees the stricken Fukushima Daiichi
nuclear plant, Jiji news agency reported on Tuesday.

The spun-off unit would become a government funded firm
dealing with the nuclear accident and compensation issues, while
the remaining part of TEPCO would stay publicly listed, Jiji
reported without citing a source.

On March 11 a magnitude 9 earthquake and a massive tsunami
triggered the nuclear disaster where reactors at the Fukushima
Daiichi facility, 240 km (150 miles) north of Tokyo, were hit by
a loss of power which disabled cooling functions.

The fate of plant operator TEPCO, at the centre of the
world’s worst nuclear disaster in 25 years, remains uncertain as
it struggles to contain the accident and faces huge compensation
requirements that could total several trillion yen according to
media reports.

The possibility of the government injecting public money
into the utility has been touted, and a government source told
Reuters that a plan to separate and nationalise TEPCO’s nuclear
business has been considered. [ID:nL3E7ET1BC]

(Reporting by Yoko Kubota and Kazunori Takada; Editing by
Joseph Radford)

UPDATE 1-Japan mulls spinning off part of nuclear operator-Jiji