Judge K P Jothindranath granted bail to Vijayan and directed him to furnish a bail bond of Rs two lakh and two sureties for the like amount.
CBI had filed a chargesheet listing Vijayan as the seventh accused in the case.
Vijayan had allegedly awarded contract to the Canadian company SNC Lavalin for renovation of three hydel projects during his tenure as power minister in 1998.
The CBI special court had on Jun 23 issued summons to all the nine accused, including Vijayan, in the case, to appear before the court on Sep 24. Vijayan had failed to appear on medical grounds.