116 Case Studies in Business Ethics and Corporate Governance
the central government and the big private players of the country. The drafted report explains that the
Directorate General of Hydrocarbons (DGH) has favored Reliance Industries Limited (RIL) to leverage
on the capital cost of the plant permitting them to gain huge margins on their initial costs. The agree-
ment between the government and the private players is based on the production sharing contract (PSC)
known as the “Investment Multiplier,” stating that the higher the initial capital cost, the greater will be
the player’s profi t share.
During the bidding process of KG Basin (D6 ...
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