The Japanese government endorsed a scheme on Friday to help Tepco, Asia's largest utility company, compensate victims of the disaster at its tsunami-stricken nuclear power plant and save it from financial collapse.

Naoto Kan, Japan's prime minister, approved the plan to create a new body to facilitate funds to utilities companies expecting to pay nuclear accident compensation claims to victims.

It is said that a government committee will for a brief period take over the control of management at Tepco to monitor its restructuring measures.

The detailed compensation plan has yet to be released, but compensation is estimated to reach trillions of yen primarily from Fukushima residents living in the vicinity of the power plant.