RIL Executive Director, PMS Prasad stated "the draft CAG report had found nothing to suggest that Reliance indulged in gold-plating viz that Reliance placed orders on its own affiliates at inflated costs or that payments made to vendors came back to Reliance".
DGH Director, General SK Srivastava stated that the Production Sharing Contract allowed companies to modify costs and plans for developing oil and gas discoveries, by adding up new inputs.
The cost escalation from proposed $2.4 billion to $8.8 billion is a result of RIL's doubling its production levels to 80 million standard cubic metre per day (mmscmd) from earlier 40 mmscmd in the year 2004. CAG is expected to take a couple of months to complete its final report before presenting it in the Parliament.
View: The response does not give any clarification on why the RIL did follow the tender protocols, and why did the DGH not question the haphazard way in which contracts were given out. This is the main issue of the report.