Guwahati/Shillong: Union Power Minister Veerappa Moily on Monday claimed there was no scandal in coal block allocation and attacked the BJP for stalling Parliament on the issue.

"The coal block allocation was done in consultation with the chief ministers of states. There is no scandal and the BJP is unnecessarily raking up the issue and stalling Parliament," Moily told reporters during his visit to Assam and Meghalaya to review the power situation in those two states.

"Prime Minister Manmohan Singh is a person of highest integrity and he is a reformer and the BJP has wrong by raising doubts about his honesty," Moily said.

He warned that de-allocation of coal blocks could retard power production in the country which would finally result in the lowering of GDP growth.

Allocation of coal blocks to private sectors had been done, he pointed out, after taking into consideration their 'massive' contribution in power generation and through a process of competitive bidding.

Defending the allocation of blocks, Moily said any action now could affect the economy of the country.  “The ratio of power to GDP growth of a country is 1:1.5.

"If you want 9 percent GDP growth, you ought to produce 8 per cent of power and if you aspire 10 percent GDP growth, your power production should be at 9 per cent,” Moily explained.

Cautioning that the UPA Government would not be cowed down by the Opposition’s move to 'sabotage' the development plan, Moily said, “We will not be cowed down by such a conspiracy to bring the country down. Our party is for the national growth."

(Agencies)

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