JR Hokkaido to Receive 130 B. Yen in State Aid
Tokyo, Dec. 25 (Jiji Press)--Japan's transport ministry said Friday that 130.2 billion yen in state financial aid will be provided to ailing Hokkaido Railway Co., or JR Hokkaido, over the three years from fiscal 2021.
Shikoku Railway Co., or JR Shikoku, will receive 102.5 billion yen over the five years from fiscal 2021, which starts in April next year, while 13.8 billion yen in interest-free loans will be extended to Japan Freight Railway Co. or JR Freight, over the three years from fiscal 2021.
The government plans to submit related legislation to the next regular session of the Diet, Japan's parliament, to be convened next month, to extend its support programs for the three JR companies, currently due to expire at the end of March next year, until fiscal 2030.
The ministry has found it necessary to boost its assistance particularly to JR Hokkaido and Shikoku, both hit by a slump in passenger service revenues due to the novel coronavirus epidemic.
"It's very important for JR Hokkaido and others running regional transportation networks to manage business independently," transport minister Kazuyoshi Akaba told a press conference.
[Copyright The Jiji Press, Ltd.]