Alex Salmond said Scotland’s Justice Secretary Kenny MacAskill had made “the right decision for the right reasons” when he granted compassionate early release to Abdelbaset Ali Mohmed Al Megrahi, who has terminal prostate cancer.

Megrahi, who was serving life for the Lockerbie airliner bombing which claimed 270 lives, returned to his native Libya in August amid a storm of protest from American relatives of the Lockerbie victims.

Mr Salmond told the SNP annual conference in Inverness that Arun Gandhi, a grandson of the celebrated pioneer of peaceful resistance, recently visited Scotland with the aim of establishing a reconciliation centre at a Scottish university.

“One of the things he told me is that his grandfather’s philosophy is much misunderstood,” said Mr Salmond.

“His resistance was not passive but active, his dedication to non violence a strength not a weakness.

“Sometimes someone has to break the cycle of retribution with an act of compassion.”

To applause from delegates Mr Salmond went on: “That is what Kenny MacAskill did and we should all be proud of him for doing it.”

Mr MacAskill was yesterday given two standing ovations when he defended his decision at the SNP conference, telling his audience that many Labour MPs and MSPs had privately supported him.

Today Mr Salmond said his Justice Secretary had shown there was place for compassion in the administration of justice and even in the face of “the most terrible atrocity” mercy could be put before retribution.

“We all recognise the suffering of the families of the victims,” said Mr Salmond.

“What they have experienced no family, no person, should every endure.

“But the evil of terrorism thrives in the darkness of fear and shrinks from the light of compassion.

“It is right that Mr Al Megrahi was tried and convicted for his crimes, but it is also right that he was sent home to die.”

Mr Salmond’s endorsement came in a conference speech which also set out an early shopping list of demands that the SNP would make if the outcome of the next general election was a hung Parliament.

The SNP leader has set his party the target of increasing its present tally of MPs from seven to at least 20 in the election.

This enlarged bloc, Mr Salmond said today, would be able to extract valuable financial concessions.

“Votes for this party at the coming election will turn all those noes into yeses from the London Government,” he said.

“A Scottish bloc of MPs will unblock the Westminster Parliament.

“We shall use our voting power to make London dance to a Scottish tune.” The list of demands would include allowing Scottish ministers to continue bringing forward £350 million of spending previously earmarked for future years.

“We need the right to continue that process this year because 5,000 jobs depend on this initiative,” he said.

Demands would also include extra cash for Scotland as a knock-on consequences of spending on the 2012 London Olympics and the release of £160 million in fossil fuel levy cash “scandalously” frozen in London.

His speech contained a new spending announcement - £7.5 million for replacing 710 defibrillators in the Scottish ambulance fleet in order to improve heart attack survival rates.

He hailed the record of the minority SNP administration in policies ranging from education to health and law and order.

In education, he said 100,000 fewer youngsters were in crumbling schools and that total would be increased next year by 30,000.

The most recent round of regional selective assistance grants had seen £19 million of public cash go to 32 firms for projects safeguarding or creating nearly 2,500 jobs.

Mr Salmond told the conference in Inverness: “Altogether in just over two years the Government, the SNP Government, have achieved and passed 63 of our headline manifesto commitments.

“That’s what’s been achieved - two-thirds of our headline commitments at just over half way through our terms.”

Mr Salmond dismissed Labour in the Scottish Parliament as “less of an opposition, more of a comedy routine”.

And he attacked Gordon Brown for the Prime Minister’s refusal to allow Scottish ministers onto UK delegation to crucial climate change talks in Copenhagen in December.

“The reality is that Gordon Brown cannot stand the idea of Scotland being visible in the international community - even when we have passed world-leading and potentially planet-saving legislation.”

Mr Salmond also told other parties they would be unable to continue blocking moves towards an independence referendum.

“Leave no room for misunderstanding - Scotland’s voice will be heard on the great issue of the country’s future,” said the First Minister.

“Labour want a referendum on the alternative vote, the Tories want a referendum on Europe, the Liberals on everything else.

“But they have the effrontery to refuse the people of Scotland the right to speak on their constitutional future.

“Let us be clear - no political party can long deny the right of the people of Scotland to exercise self-determination and survive as a political force in Scotland.”

Labour ridiculed the Gandhi comparison.

Scottish Labour justice spokesman Richard Baker said: "Alex Salmond is losing his grip on reality.

"I am staggered that anyone would mention Kenny MacAskill in the same sentence as Mahatma Gandhi.

"The bragging that has gone on at the SNP conference about the release of the Lockerbie bomber is stomach turning and will further damage Scotland's reputation."

Scottish Liberal Democrat leader Tavish Scott said: "Alex Salmond has sent a very clear message - vote SNP get Tory.

He went on: "In Scotland already if you vote Tory you get SNP.

"The two parties are now inextricably linked."