"We are considering granting approval to the project," Nayanar said adding that the state government had not so far taken a final stand on the project.

The Central Electricity Authority had recently refused techno-economic clearance (TEC) to the project as it did not have the approval of the state government. The decision of the K P P Nambiar group to rope in the US multinational Enron as a majority stake-holder in the project had created differences in the ruling front as a section of the CPM was opposed to Enron's entry into Kerala.

Enron was to hold 74 per cent equity in the proposed project with the remaining 26 per cent stake going to K P P Nambiar group.