Chawla committe finds fault with Production Sharing Contract (PSC)

Chawla committee notes the fault line is the PSC between operator RIL and Government.The relationship between the pre-tax investment multiple (PTIM) and the share of contractor profit petroleum changes dramatically once the PTIM crosses 2.5, with the government's share increasing from 28 per cent to 85 per cent. There is thus an incentive for bidder higher PTIM in the bid but work towards lower in actual.
Source: Economic Times