BEIJING -- China's state-owned assets watchdog on Sept 29 announced the completion of restructuring of its bloated electricity industry, breaking up the design and construction businesses from power grids and firms and establishing two new companies.

The two new firms, PowerCorp China (PowerCorp) and China Energy Engineering Group Co Ltd (CEEG), are both solely funded by the state, according to the State-owned Assets Supervision and Administration Commission (SASAC).

The separation of auxiliary businesses from the nation's power grids and power generating companies was part of the country's efforts to reform the power industry as formulated by the State Council in 2002, said Wang Yong, head of SASAC.

"This marks a major step forward in the country's economic restructuring this year," Wang said at the launching ceremony of the two new state companies.

After the restructuring, the state-owned Sinohydro Corporation, HydroChina Corporation, together with the design and construction units previously affiliated with the State Grid and the China Southern Power Gird in Shanghai, Hebei, Jilin and 11 other regions, will merge into PowerCorp, with assets totaling 196 billion yuan ($30.63 billion) and 202,700 employees.

Meanwhile, CEEG has taken over the other two state-owned enterprises, the China Gezhouba (Group) Corporation and the China Power Engineering Consulting Group Corporation, along with auxiliary units previously operated by the State Grid and the China Southern Power Gird in Beijing, Tianjin, Shanxi and 13 other provinces or regions.

CEEG has assets totaling 120 billion yuan and 160,000 staff.