Govt offers 10b yuan in subsidies for power sector

China is to provide as much as 10 billion yuan in subsidies to big power companies, the latest effort on the part of the government to help the country's struggling industries.

The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) will give the subsidies to the five leading power generating companies and the two grid companies to cover their losses caused by last year's snowstorms, the Sichuan earthquake, soaring coal costs and capped power tariffs, reported China Business Journal, citing an unnamed source with State Grid Corp of China.

The five power producers are China Huaneng Group, China Datang Corp, China Guodian Corp, China Huadian Corp and China Power Investment Corp, and the two grid companies are State Grid and China Southern Power Grid Co.