Tokyo Electric Power (TEPCO) has submitted a request to the Japanese Federal Government seeking financial aid for compensating the victims affected by the quake-hit Fukushima plant.

The government has agreed to provide funds to TEPCO, which said it accepts liability for damages caused by the nuclear accident for 25 years.

TEPCO will streamline its operations and is looking to sell securities holdings and real estate to create funds and has already announced salary cuts of 50% for board members.

The firm is also burdened with costs of extra power generation, including an additional $12bn for fossil fuel, with its Fukushima Daiichi plant and other facilities offline after 11 March 2011.

The government is also considering taking an equity stake in TEPCO, reports AFP.