Bangalore: Asserting that allocation of coal blocks was done by the UPA Government in accordance with law, Union Corporate Affairs and Power Minister M Veerappa Moily on Saturday said it was not "fair" to question the integrity of Prime Minister Manmohan Singh based on the CAG report.

The Comptroller and Auditor-General (CAG) holding the UPA Government responsible for the loss of revenue to the tune of Rs 1.86 lakh crore was not right as the Coal Ministry took the decision (allocation) in accordance with the law, he said.

"It is unfortunate that we are not matured enough to judge the circumstances that prevailed at the time of taking the decision," he said.

"The CAG report is based on estimates and distant from reality. The CAG is not the final authority to hold the UPA Government (responsible) for the loss of revenue in the coal block allocation, as it had to be vetted by Public Accounts Committee," he said, adding it was not "fair" to question the integrity of the Prime Minister based on the report.

The CAG report had estimated a gain of Rs 1.86 lakh crore to private firms in allocation of 57 coal blocks between 2005 and 2009 without competitive bidding.

Turning to the power sector, Moily said the government planned to increase private participation in power generation in the 12th Five Year Plan period to 80 percent from the present 55 percent.

At present, states' contribution to power generation stood at 23.43 percent, that of Centre 21.55 percent and private sector 55.02 percent.

On Karnataka's demand for additional power, he said power distribution to the states from the National grid would be done in accordance with the "Gadgil Formula".


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