PMS Prasad counters the allegations made by the Anil Dhirubhai Ambani Group (ADAG) and clarifies RIL’s stand. Prasad countering ADAG’s allegation, said that the capex had not been inflated.
Explaining the reasons behind the fourfold increase from USD 2.47 billion in 2003 to USD 8 billion, he said, “The drilling costs have gone up by 300-400% but that’s not the only thing. Even the engineering services costs per man, has gone up to USD 150-200 or more. So we pay USD 2,000 to 2,500 a day to some of the installation crew. This is not the kind of rates that were being paid in 2003-04. That is simply because the world didn’t have enough experienced people to do this kind of work. And we had to attract them to come here by incentivising them and by paying higher salaries.”
“In addition, all the installation vessels, there are very few installation contractors in the world of the quality that we needed and we have employed some of the best installation contractors of the world from France, Netherlands and from the US and to get them to work here and considering the weather and the downtime that we have had because of the weather,” he added.
Source: Money control
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