The project, jointly promoted by CRL and Kerala government and pending with the Centre for the last three years, is expected to be cleared of all hurdles soon, state electricity minister S Sarma told reporters here.

"Union power minister P R Kumaramangalam has agreed to clear the project after visiting the CRL plant in Kochi on February 4," Sarma said.

Sarma met Kumaramangalam and Union petroleum minister Ram Naik on Wednesday for pressing various demands including allocation of surplus power in the eastern sector to Kerala.

The minister said Kerala State Electricity Board (KSEB) would take 11 per cent stake in the Rs 3,000-crore power project and other state government bodies like Kerala State Industrial Development Corporation (Ksidc) were also expected to take equity in the project.

"A state like Kerala cannot afford high cost fuel to fire power projects and projects like the one proposed by CRL are needed to generate low-cost power," Sarma said. Stating that the state's quota of the unallocated power from the Central generating station in southern region has been most unfair, Sarma said the increase in the unallocated share of Andhra Pradesh, Karnataka and Tamil Nadu have been at the cost of Kerala.

During a meeting of southern electricity boards in August last year, it was decided that the unallocated power of eastern region be shared by the southern states with 15 per cent going to Kerala.

Sarma said the Union power minister has assured him of necessary steps to clear the anomaly. The minister also asked the Centre to take immediate steps to reduce the cost of power after the recent increase in naphtha prices at the international markets.