An Iranian minister said on Tuesday that Iran has possessed the capability of generating electricity using nuclear power, the official IRNA news agency reported.

"Iran is now capable of nuclear power generation, which marks a colossal progress in its industry sector," Es'haq Jahangiri, Minister of Industries and Mines, was quoted as saying.

"At present, technical capacity in the field of electricity generation from nuclear energy has been built and we hope that it will be used in a favorable way," Jahangiri added.

Jahangiri also reiterated Iran's legitimate right to nuclear power generation and dismissed the US allegation that Iran is secretly developing atomic weapons.

The Islamic Republic insists that its nuclear program is for peaceful purposes, saying it is in accordance with the country's bid to produce 7,000 megawatts of electricity in the next 20 years.

Iran has been working on building a full nuclear fuel cycle and has already announced that it can produce nuclear fuel by its own.

Actual nuclear power generation, however, is expected to take place when a Russia-aided plant in the southern city of Bushehr becomes operational by the end of 2005.