"The Government will pay the amount as early as possible. This has been decided by the cabinet," Chief Minister Oommen Chandy told reporters after a cabinet meeting.
On media reports regarding his government's earlier decision to ignore CBI's recommendation to take action against three police officers who initiated the spy case in 1994, Chandy said "I will look into it."
Asked if government was prepared to take action against them if a fresh complaint was received, he said, "government will examine the matter after seeking legal advice."
On September 7, the High Court had directed payment of Rs 10 lakh as compensation to Narayanan, who played a key role in some of ISRO's major projects, within three weeks, upholding the 2001 National Human Rights Commission decision which the state government had challenged.
The case, which hit the headlines in 1994, pertained to allegations of transfer of certain secret documents on India's space programme to foreign countries by two scientists and four others, including two Maldivian women.
The case was first investigated by state police and later handed over to the CBI, which found no espionage as alleged had taken place.
Nambi Narayanan's petition seeking Rs one crore compensation for the damage suffered to his reputation and career is pending in a local court here.