Japan would have to shell out up to ¥3.2 trillion ($49.7 billion) as blanket compensation to at least 440,000 people across the country who are believed to have contracted Hepatitis B infection due to the use of infected needles during group vaccinations several years ago.

The plaintiffs, who had sued the government after they apparently contracted the ailment during a vaccination programme, accepted the plan recently after the government agreed to their two conditions - an apology and adequate compensation. The information was made public by the Kyodo News agency yesterday.

The compensation was proposed earlier this month by the Sapporo District Court to about 630 people who had filed suits seeking relief for damages in 10 district courts across the country. The court had proposed that the government pay ¥12.5 million to ¥36 million in damages to the patients based on their condition, on top of ¥500,000 each in compensation.

"It was a tough decision but we decided to accept the proposal to swiftly end this issue", the plaintiffs said in a statement.

Besides, the government is contemplating to frame a legislation to offer relief to those patients who had not filed lawsuits. The agency reported Chief Cabinet Secretary, Yukio Edano saying that the government had "no plans yet on how to cover the compensation package".