TOKYO, July 22: Japan has agreed to let UN experts inspect its largest nuclear power plant, which leaked radiation after a powerful earthquake, causing a scare, a report said.

Kyodo News said the industry ministry has told the International Atomic Energy Agency (IAEA) it will agree to the inspection of the plant some 250 kilometres northwest of Tokyo.

No officials could immediately be reached late Sunday to confirm the report, which quoted unnamed government officials.

Last Monday's deadly 6.8 Richter-scale earthquake caused a fire for hours at the Kashiwazaki-Kariwa plant, which automatically shut down.

The plant's operator, Tokyo Electric Power Co. (Tepco), later said radiation leaked. The company said the amount was far too small to pose a health hazard but has come under criticism for initially underreporting radiation levels.

Earlier on Sunday, the governor of Niigata prefecture, where the plant is located, appealed to Prime Minister Shinzo Abe to allow an IAEA inspection.

“The accident created anxiety among the people and the prefecture has been hit hard by harmful rumours” about the possible impact of the radiation, Governor Hirohiko Izumida told reporters.

“We have much to do on the facilities, management and system,” the governor said. “In order to deliver accurate information, I think it's good to ask an international organisation to assess the situation.” IAEA chief Mohamed ElBaradei had earlier called for transparency and said the UN watchdog was ready to assist in an inspection.

Previous news reports had said Japan had no plans for an inspection by the IAEA, which is best known here for monitoring the nuclear weapons programme of arch-enemy North Korea.

The earthquake killed 10 people, injured more than 1,000 and destroyed hundreds of buildings.

Despite experiencing 20 per cent of the world's strong earthquakes, Japan has been increasingly turning to nuclear power as it has virtually no natural energy resources of its own.The Nikkei business newspaper reported on Sunday that Tepco would suffer extra costs of at least $1.7 billion due to the damage to the plant.

It said it would be “extremely difficult” for Tepco to resume operations at the plant by March next year as it will take time to have its quake-resistance capabilities reinforced.Tepco will be forced to compensate clients that expected power from the plant, the Nikkei said.—AFP