"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 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.